Question

10. The CI on 16000 for 1 years at 10% pa payable half-yearly is
(a) * 2.222 (b) 2,522
(c) 2.500
(d) none of these
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Answer 1

Answer:

A = P(1 + r/200)^2

A = 16000(1 + 10/200)^2

=> 16000(1 + 1/20)^2

=> 16000(21/20)^2

=> 16000 (1.05)^2

=> 16000 ( 1.1025)

=> 17,640

therefore C.I. = 17640 - 16000

=> 1640

option d