A sum of Rs. 10,000 is invested for a term of2 1/2 years at an interest rate…
2025
A sum of Rs. 10,000 is invested for a term of2 1/2 years at an interest rate of 8% compounded annually.
The amount on maturity will be:
- A.
Rs. 12520.50
- B.
Rs. 12024.62
- C.
Rs. 12130.56
- D.
Rs. 11664.48
Attempted by 5 students.
Show answer & explanation
Correct answer: C
To find the maturity amount, calculate compound interest for full years and simple interest for the fractional period.
Step 1: Calculate amount after 2 years using A = P(1 + R/100)^n.
A = 10,000 * (1.08)^2 = 10,000 * 1.1664 = Rs. 11,664.
Step 2: Calculate simple interest for the remaining half year on Rs. 11,664.
Interest = 11,664 * (8/100) * 0.5 = Rs. 466.56.
Final Amount = 11,664 + 466.56 = Rs. 12,130.56.