| Mr. Duggal invested Rs. 20000 with rate of interest at 20% per annum. The interest compounded half-yearly for first year and in the next year it was compounded yearly. What will be the total interest earned at the end of two years? |
A) Rs. 8800
B) Rs. 9040
C) Rs. 8040
D) Rs. 9800
E) None of these
Correct Answer: B
Solution :
| Amount = Principal \[{{\left( 1+\frac{\text{Rate}}{100} \right)}^{\text{Time}}}\] |
| \[=20000{{\left( 1+\frac{10}{100} \right)}^{2}}\left( 1+\frac{20}{100} \right)\] |
| [rate of interest for the first year = 10%, Time = 2 half- years] |
| \[=\left( 20000\times \frac{11}{10}\times \frac{11}{10}\times \frac{6}{5} \right)=\text{Rs}\text{.}\,\,29040\] |
| \[\therefore \] \[\text{CI}=\text{Rs}\text{.}\,\,(29040-20000)=\text{Rs}.\,\,9040\] |
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