If a sum of Rs. 80,000 is invested for a year at 4% per annum compounded half-yearly, then find the compound interest.

Question

Question

This question was previously asked in

RRB Group D 26 Sept 2022 Shift 2 Official Paper

Answer 1

Given:

Principal (P) = Rs. 80,000

Rate (r) = 4% half-yearly

Time (n) = 2 half years and 1 year

Formula:

Amount (A) = P(1 + \(\frac{r}{100}\) )ⁿ

C.I = A - P

Calculation:

Since interest is compounded half-yearly, so

r = 4/2 = 2%

t = 1 × 2 = 2 years

A = 80,000(1 + \(\frac{2}{100}\))2

⇒ A = 80000 (1 + 1/50)²

⇒ A = 80,000 x 51/50 × 51/50

⇒ A = 83232

So, CI = A - P = 83232 - 80000 = Rs. 3232

∴ The correct answer is option (3).

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