The compound interest on ₹5000 at 20%.

The compound interest on ₹5000 at 20% per annum for 1 1/2 years compounded half-yearly is

(a) ₹6655
(b) ₹1655
(c) ₹1500
(d) ₹1565

Solution:

(b) ₹1655

If the number of conversion periods ≥ 2, then the compound interest is

(a) Less than simple interest
(b) Equal to simple interest
(c) Greater than or equal to simple interest
(d) Greater than simple interest

Solution:

(d) Greater than simple interest

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