Exams › SSC CGL (Prelims) › General

Find the compound interest on ₹12,000 at 8% per annum for 2 years 6 months, compounded annually.

1. ₹ 2,000
2. ₹ 2,140.8
3. ₹ 2,556.67
4. ₹ 2,500

Correct answer: ₹ 2,556.67

Solution

For annual compounding, first calculate amount after 2 years: \(12000\times1.08^2=13996.8\). For the remaining 6 months, add simple interest at 8% for half a year on this amount: \(13996.8\times0.04=559.872\). Thus total CI \(=13996.8+559.872-12000=2556.672\approx ₹2556.67\).

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