If a sum of ₹9,375 is invested at 8% annual compound interest rate calculated on a half-yearly compounded basis, find the amount received after one year.

Question

Question

This question was previously asked in

RRB Group D Previous Year Paper (Held on: 26 Aug 2022 Shift 2)

Answer 1

Given:

Principal (P) = ₹9,375

Rate (r) = 8% per annum

Time (t) = 1 year

Compounding frequency = Half-yearly

Formula used:

A = P\((1+\frac{r/n}{100})^{nt}\)

Where,

n = number of compounding periods per year

t = time in years

Calculations:

A = 9375\((1+\frac{8/2}{100})^{2 \times 1}\)

⇒ A = 9375\((1+\frac{4}{100})^{2}\)

⇒ A = 9375\((1+0.04)^{2}\)

⇒ A = 9375\((1.04)^{2}\)

⇒ A = 9375 × 1.0816

⇒ A = 10140

∴ The correct answer is option (1).

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