Discussion

Question:

Determine the C.I. on Rs. 2400 at 10% p.a. for $1 \frac{1}{2}$ years when C.I. is compounded half yearly.

Explanation:

Rate of interest for half year = 10/2 = 5%

Number of compounding periods = 2 × 1.5 = 3.

C.I. = $2400 \{{(1 + \frac{5}{100})}^{3} - 1\} = 378.30$

Hence, option (d).

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