Find the compound interest on Rs 1000 at the rate of 20 per annum for 18 month when interest is comp...........

Explanation:

Principal, P = Rs. 2000
Compound rate, R = 20% per annum = 20/2 = 10% half-yearly
Time = 18 month = 3 half-years
Amount,
A = {P*[1+ (R/100)] ⁿ }
= {2000*[1+(10/100)] ³}
= {(2000*11*11*11/10*10*10)}
A = Rs. 2662
compound interest = Rs. 662.

Hence, option 1 is the correct answer.