Hafeez invested Rs. 15000 @ 10% per annum for one year. If the interest is compounded half-yearly, then the amount received by Hafeez at the end of the year will be?

A. Rs. 16,500
B. Rs. 16,525.50
C. Rs. 16,537.50
D. Rs. 18,150

Explanation:

P = Rs. 15000; R = 10% p.a. = 5% per half-year; T = 1 year = 2 half-year

Amount = [15000 * (1 + 5/100)²]
= (15000 * 21/20 * 21/20) = Rs. 16537.50

Correct Answer: Rs. 16,537.50 ✔

Last Updated: February 07, 2020