How much will a sum of ₹72,000 become after one year if the interest is compounded half-yearly at 10% per annum compound interest?​

Correct option is D

Given:

Principal P = ₹72,000

Rate of interest R = 10% per annum compounded half-yearly

Time T = 1 year

Formula Used:

Amount  = $$P \left(1 + \frac{r}{100} \right)^n$$​​

Solution: 

For compound interest compounded half-yearly:

Rate per half-year = $$\frac{R}{2} = 5\%$$​​

Number of periods = 2 × T = 2 

Now, 

A = $$72000 \left(1 + \frac{5}{100} \right)^2$$​​

​$$= 72000 \times \left(\frac{21}{20}\right)^2$$​​

​$$= 72000 \times \frac{441}{400}$$​​

​= ₹79,380