The compound interest on ₹10,000 at 20% per annum is ₹4,641 If the compounding is done half-yearly, then for how many years was the sum invested?

Correct option is A

Given:

Principal(P) = 10000

Rate of interest(R) = 10%

Compound Interest (C.I) = ₹4641

Formula Used:

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

Where, r = rate of interest compounded yearly

n = time

Solution:

As per the question;

Let time = n

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

Putting the values, and solving

​$$\frac {14641}{10000}= \left( \frac {11}{10} \right)^n$$

n = 4

but the interest is half yearly. 

So, no. of years = 2 years

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