Test Index

AFCAT Model Paper 6

© examsnet.com

Question : 59 of 100

Marks: +1, -0

A sum of Rs. 12000 is invested at a scheme of compound interest. The interest rate is 10%. If the interest is compounded half yearly, then what will be the interest (in Rs.) after 1 year?

1230
1000
1200
1375

Solution:

Given:

Principal = Rs. 12000

Rate of interest = 10%

No. of half years = 2

Formula Used:

Amount

(A)=P\left[1+\frac{R}{100}\right]^{n}

Where, P = Principal, R = Rate, n = Time (in years)

Calculation:

According to the question

⇒ Amount

=12000 \times \left(1+\frac{\frac{10}{2}}{100}\right)^2

⇒

12000 \times (1.05)^{2}

⇒ 12000 × 1.1025

⇒ 13230

∴ Interest earned = Rs. (13230 - 12000) = Rs. 1230

© examsnet.com

Go to Question:

Prev Question

Next Question