Arithmetichard · Past Paper

Simple interest on a certain sum for 2 years at 10% is Rs 400. Find the compound interest on the same sum for the same period at the same rate, compounded semi-annually.

ARs 420
BRs 431.01
CRs 440.50
DRs 410.25

✓ Correct Answer: BRs 431.01

P = 400*100/(2*10) = 2000. Semi-annual CI: R=5%, T=4 periods. A = 2000(1.05^4) = 2000(1.21550625) = 2431.01. CI = 431.01.

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