If the rate of interest is 10% per annum and is compound half-yearly. then the principle of ₹400 in 3/2 years will amount to

Options

A. ₹463
B. ₹463.05
C. ₹463.15
D. ₹463.2

Answer

B

Explanation

Given R = 10% , P = ₹ 400 and T ` 3/2 ` years
Compounding is half -yearly , then ,
` T = 3/2 xx 2 =3 " years" `
`P = 10/2 = 5% `
Amount , A =P ` ( 1 + R/200)^(T)`
` A = 400 (1 + 5/100)^(3)`
` = 400 xx 21/20 xx 21/20 xx 21/10 = ₹ 463.05 `