A sum of Rs 18 000 is invested for 16 months at 8 per annum compounded half yearly What is the perce...........

Quantitative Aptitude (CPO) Compound Interest

A sum of Rs 18,000 is invested for 16 months at 8% per annum compounded half-yearly. What is the percentage gain at the end of 16

months. to the nearest whole number?

This questions was previously asked in

SSC CPO 12th-March-2019-Shift-2

10%

11%

12%

- The principal amount is Rs 18,000, invested for 16 months at 8% per annum, compounded half-yearly.

- First, convert 16 months to years = 16/12 = 4/3 years.

- Number of half-years = (16/12) × 2 = 8/3 ˜ 2.67 periods.

- Rate per half-year = 8%/2 = 4%.

- Compound Interest formula: A = P(1 + r/100)^n.

- So, A = 18000 × (1 + 0.04)^(8/3)

- (1.04)^(8/3) ˜ (1.04^2)^(8/6) ˜ (1.0816)^(4/3) ˜ 1.1087

- So, Amount ˜ 18000 × 1.1087 ˜ Rs 19,956.6

- Percentage gain = ((19,956.6 - 18,000)/18,000) × 100 ˜ 10.9% ˜ 11% (nearest whole number)

Option 2 (11%) is correct.

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