A trader invests Rs. 50,000 at an annual compound interest rate of 6%. Find half of compound interest received after 3 years.

Correct option is A

Given:

Principal (P) = Rs. 50,000

Rate (R) = 6% p.a.

Time (T) = 3 years

Formula Used:

A = $$P \left(1 + \frac{R}{100}\right)^T$$​​

CI = A - P

Solution:

A = $$50000 \left(1 + \frac{6}{100}\right)^3$$​​

​$$= 50000 \times \left(\frac{53}{50}\right)^3$$​​

​$$= 50000 \times \left(\frac{53}{50}\right)\times \left(\frac{53}{50}\right)\times \left(\frac{53}{50}\right)$$​​

= 59550.8

Now, 

CI = 59550.8 - 50000 = 9550.8

Half of CI = $$\frac{9550.8}{2}$$​ = 4775.4

Thus, Half of the compound interest after 3 years is Rs. 4,775.40