A sum of Rs 10 000 is deposited for 1 year at the rate of interest 10 compounded half yearly What wi...........

Quantitative Aptitude (CDS) Compound Interest

A sum of Rs.10, 000 is deposited for 1 year at the rate of interest 10% compounded half yearly. What will be the interest at the end of one year?

Rs.1000

Rs.1025

Rs.1050

Rs.1100

Rate = $\frac{10}{2} = 5\%$
Time = 1 × 2 = 2 years

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

$A= 10000(1+\frac{5}{100})^{2}= 10000\times\frac{21}{20}\times\frac{21}{20}$
= 441 × 25 = 11025
Interest = 11025 – 10000 = 1025

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