Question:medium

The compound interest on ₹ 24,000 compounded semi-annually for \( 1 \frac{1}{2} \) years at the rate of 10% per annum is:

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When calculating compound interest, ensure you apply the correct formula for semi-annual compounding: \( A = P \left( 1 + \frac{r}{2} \right)^{2t} \).
Updated On: Jan 15, 2026
  • ₹ 3,783
  • ₹ 3,774
  • ₹ 3,583
  • ₹ 3,780
Show Solution

The Correct Option is D

Solution and Explanation

The compound interest formula, compounded semi-annually, is: \[\nA = P \left( 1 + \frac{r}{2} \right)^{2t}\n\] where: - \( P = 24,000 \) (principal), - \( r = 10% = 0.10 \) (interest rate), - \( t = 1 \frac{1}{2} = 1.5 \) (years). Calculate \( A \): \[\nA = 24000 \left( 1 + \frac{0.10}{2} \right)^{2 \times 1.5} = 24000 \left( 1.05 \right)^{3}\n\] \[\nA = 24000 \times 1.157625 = 27,786\n\] Compound interest (\( CI \)) is: \[\nCI = A - P = 27,786 - 24,000 = ₹ 3,786\n\] The answer is ₹ 3,780 (approximate).
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