Question

16.A sum is taken for 2 years at 16% Pa If interest is compounded helf-yearly, the no of times for
which interest is charged in 2 years is
(a) 8
(b) 4
(c) 6
(d) 9​

Answer 1

Answer:

Option A) 8 is the right answer.

Step-by-step explanation:

Rate of interest is compounded after every three months. Thus, the time period for amount in a year will be 4 times. If amount is taken for 2 year, then 4 × 2 = 8 times charged in 2 year.