A sum of Rs 10000 becomes Rs 14641 when invested at compound interest at the yearly interest rate of 20% per annum. If the compounding is done half yearly, then for how many years was the sum invested?

This question was previously asked in

SSC CHSL Previous Paper 59 (Held On: 16 March 2018 Shift 2)

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Option 2 : 2

Let's discuss the concepts related to Interest and Compound Interest. Explore more from Quantitative Aptitude here. Learn now!

Given,

Sum = Rs. 10000

Amount = Rs. 14641

Rate = 20% per annum = 10% per 6 month

Now,

Amount = Principal{1 + (rate/100)}^{time}

⇒ 14641 = 10000{1 + (10/100)}^{time}

⇒ 14641/10000 = (11/10)^{time}

⇒ (11/10)^{4 }= (11/10)^{time}

⇒ time = 4

AS, it was compounded half yearly

∴ Actual time of investment = 4/2 = 2 years

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