A certain sum invested at 20% per annum compound interest compounded half yearly, amounts to Rs.1452 at the end of one year. The sum is:
Answer & explanation
Correct answer: option 1
Given rate = 20%
Time = 1 year
( The interest is compounded half yearly then, )
Effective rate will be = 10 + 10 + \(\frac{10 × 10}{100}\) = 21%
Amount = Principle + interest = 100% + 21% = 121%
121% = 1452
100% = 1200(Sum)