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Compute the compound interest on Rs.1000 for 2 years at 10% per annum when compounded half yearly.

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₹200

₹215

₹250

₹270

answer is B.

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Detailed Solution

A = P {(1 + \frac{R}{200})}^{2 n} = 1000 {(1 + \frac{10}{200})}^{2} = 1000 {(\frac{21}{20})}^{2} = 1000 (\frac{21}{20}) (\frac{21}{20}) = 1215.5

CI = A - P = ₹215.5

\approx

₹215

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