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Sangeeta lent Rs. 40,960 to Amar to purchase a shop at 12.5% per annum. If the interest is compounded semi-annually, find the interest paid by Amar after .

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1870

8170

7810

6810

answer is B.

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Detailed Solution

Concept- Compound interest is defined as the interest you earn on interest.
Principal = Rs.40960
Rate =12.5%p.a
Semi-annually after t =

CI =

Hence, the correct option is 2.

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