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Q.

The compound interest on Rs. 6250 at 8%  per annum for 1 year, compounded half yearly is

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a

Rs. 500

b

Rs. 560

c

Rs. 550

d

Rs. 510

answer is B.

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Detailed Solution

Principle P=Rs.6250,

rate of interest R= 82=4% ( compounded half yearly)

 Time n=2( for one year two times compounded)

 C.I=?

C.I=P(1+R100)nP

C.I=6250(1+4100)26250

C.I=6250×104100×1041006250

C.I=67606250=Rs.510

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The compound interest on Rs. 6250 at 8%  per annum for 1 year, compounded half yearly is