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

Question

Question

This question was previously asked in

RRB NTPC Graduate Level CBT-I Official Paper (Held On: 06 Jun, 2025 Shift 3)

Answer 1

Given:

Principal (P) = ₹9,900

Rate (r) = 20% per annum

Compounding frequency = Half-yearly

Time (t) = 1 year

Formula used:

A = P(1 + r/(100 × n))^n×t

Where:

A = Amount

P = Principal

r = Rate of interest

n = Number of times interest is compounded in a year

t = Time in years

Calculation:

n = 2 (compounded half-yearly)

A = 9,900(1 + 20/(100 × 2))^2×1

⇒ A = 9,900(1 + 20/200)²

⇒ A = 9,900(1 + 0.1)²

⇒ A = 9,900(1.1)²

⇒ A = 9,900 × 1.21

⇒ A = ₹11,979

∴ The correct answer is option (3).

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