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Interest
Compound Interest
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NTPC Graduate Tier 1 2025 Shift-3 📅 06 Jun, 2025

What will be the amount after 1 year if ₹9,900 is invested at 20% compound interest per annum, compounded half-yearly?

A
12,940
B
12,495
C
11,307
D
11,979
Result Summary
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APEDIA

NTPC Graduate Tier 1
2025 • 06 Jun, 2025 • Shift-3
What will be the amount after 1 year if ₹9,900 is invested at 20% compound interest per annum, compounded half-yearly?
Correct Answer
11,979
Adjusting Rate and Time: The principal amount (P) is ₹9,900. The annual interest rate (R) is 20%. Since it is compounded half-yearly, the effective rate per h......
Ref/Book : NTPC Graduate Tier 1 2025
Ref. Subject Interest
Chapter -
Ref. Topic Compound Interest
Pg. No -
💡 Analysis & Explanation
Adjusting Rate and Time ▼
The principal amount (P) is ₹9,900. The annual interest rate (R) is 20%. Since it is compounded half-yearly, the effective rate per half-year (r) is 20% / 2 = 10%. The time (t) is 1 year, which translates to n = 2 half-yearly compounding periods.
Applying the Compound Interest Formula ▼
The formula for the amount is $A = P(1 + r/100)^n$. Substituting the values: $A = 9900(1 + 10/100)^2$.
Step-by-Step Calculation ▼
This simplifies to $A = 9900(1 + 0.1)^2 = 9900(1.1)^2$. Calculating the square gives $1.1^2 = 1.21$. Finally, $A = 9900 \times 1.21 = 11979$.
Conclusion ▼
The total amount after 1 year will be ₹11,979.
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