A certain sum invested at 4% per annum compound interest compounded half yearly, amounts to Rs.15606 at the end of one year. The sum is:
Answer & explanation
Correct answer: option 3
Given rate = 4%
Time = 1 year
( The interest is compounded half yearly then, )
Effective rate will be = 2 + 2 + \(\frac{2 × 2}{100}\) = 4.04%
Amount = Principle + interest = 100% + 4.04% = 104.04%
104.04% = 15606
100% = 15000 (Sum)