What will be the amount after 1 year if ₹9,900 is invested at 20% compound interest per annum, compounded half-yearly?

Correct option is D

Given:

Principal P = ₹9,900

Rate R = 20%  p.a.

Compounded half–yearly

period rate =$$\dfrac{20\%}{2}$$​=10%

Time t = 1 year

number of half-years n = 2

Formula Used:

Amount in CI with (m) compounding per year:
A=$$P\left(1+\frac{R}{m}\right)^{mt}$$​​
Solution:

Here m = 2:
A=$$9900\left(1+\frac{0.20}{2}\right)^{2}$$​​
=$$9900(1.10)^2$$​​
=$$9900\times1.21$$​​
= ₹11,979