Rs $7500$ is borrowed at $4\%$ per annum compound interest for $1$ year, compounded half-yearly. The amount payable is:

Question

Rs $7500$ is borrowed at $4\%$ per annum compound interest for $1$ year, compounded half-yearly. The amount payable is:

Option A

Rs 7725

Option B

Rs 7800

Option C — Correct answer

Rs 7803

Correct choice.

Option D

Rs 7830

Explanation

Half-yearly amount $=7500\left(1+\frac{4}{200}\right)^2=7500\times1.02^2=7803$.

Chapter Mock 5: Simple Interest and Compound Interest