A certain sum invested at 8% per annum compound interest compounded half yearly, amounts to Rs.10816 at the end of one year. The sum is:
Answer & explanation
Correct answer: option 4
Given rate = 8%
Time = 1 year
( The interest is compounded half yearly then, )
Effective rate will be = 4 + 4 + \(\frac{4 × 4}{100}\) = 8.16%
Amount = Principle + interest = 100% + 8.16% = 108.16%
108.16% = 10816
100% = 10000(Sum)