Consider the compound interest of the following

(A) The compound interest on Rs. 30500 at 15% per annum for 2 years. (compounded annually) is: Rs. 9836.25
(B) The compound interest of Rs. 5000 at 20% per annum for one year is compounded (half-yearly) is: Rs. 6050.

Which of the following statements is/are correct?

Only (A)

The correct answer is Option (1) → Only (A)

Statement (A):
Principal = 30,500
Rate = 15 percent per annum
Time = 2 years

Amount = 30,500 × (1 + 15/100)²
= 30,500 × (1.15)²
= 30,500 × 1.3225
= 40,336.25

Compound Interest = 40,336.25 − 30,500
= 9,836.25

Correct.

Statement (B):
Principal = 5,000
Rate = 20 percent per annum
Time = 1 year, compounded half-yearly

Rate per half-year = 10 percent
Number of periods = 2

Amount = 5,000 × (1 + 10/100)²
= 5,000 × (1.1)²
= 5,000 × 1.21
= 6,050

Compound Interest = 6,050 − 5,000
= 1,050

The given value mentions Rs. 6050 as compound interest, but 6,050 is the amount, not the interest.

Incorrect.