Q146
ArithmeticSimple & Compound Interest
₹ 10,000 is borrowed at 20% p.a., interest compounded half-yearly. Find the amount repayable after one year.
- a.₹ 11,000
- b.₹ 12,000
- c.₹ 12,100
- d.₹ 14,400
Answer: (C) ₹ 12,100
Half-yearly compounding at 20% p.a. means 10% for each of 2 half-years. Amount = 10000 × 1·1 × 1·1 = ₹ 12,100. ₹ 12,000 is the simple-interest amount, and ₹ 14,400 compounds 20% twice.