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    If the interest is compounded half-yearly, find the Compound Interest on the sum of Rs.18500 at the rate of 40% per annum for 18 months.
    Question

    If the interest is compounded half-yearly, find the Compound Interest on the sum of Rs.18500 at the rate of 40% per annum for 18 months.

    A.

    Rs.15469

    B.

    Rs.13468

    C.

    Rs.16000

    D.

    Rs.16280

    Correct option is B


    Half yearly rate = 40/2%=20%= 1/5
    For 6 months, 5 – 6
    Next 6 months, 5 – 6
    Last 6 months = 5 – 6
    After 18 months = 125 – 216
    CI = 216 – 125 = 91
    CI = 18500/125 ×91= Rs. 13,468

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