Question:
What is the total amount received after 1 year if a sum of 36,875 is invested at the annual interest rate of 16% compounded half yearly?
What is the total amount received after 1 year if a sum of 36,875 is invested at the annual interest rate of 16% compounded half yearly?
Updated On: Mar 4, 2025
- 43,001
- 43,011
- 43,021
- 43,031
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The Correct Option is B
Solution and Explanation
Calculating Compound Interest
Formula for Compound Interest:
A = P (1 + r / 2 × 100)²ᵗ
Given Values:
- Principal (P) = Rs 36,875
- Rate of interest (r) = 16%
- Time (t) = 1 year
- Compounded half-yearly → n = 2 times per year
Step-by-Step Calculation:
A = 36,875 (1 + 16 / 200)²
A = 36,875 × (1.08)²
A = 36,875 × 1.1664
A ≈ 43,011
Final Answer:
Thus, the correct answer is Rs 43,011 (Option B).
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