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Compound Interest
How much would a sum of Rs 16,000 approximately amount to in 2 years at 10% per annum compounded half-yearly?
Explanation and memory cue
The amount A is calculated using the compound interest formula A = P(1 + r/n)^(nt). Here, P = 16000, r = 10% = 0.10, n = 2 (compounded half-yearly), t = 2 years. So, A = 16000 * (1 + 0.10/2)^(2*2) = 16000 * (1.05)^4 = 16000 * 1.21550625 ≈ Rs 19448. However, option C is Rs 19448, which matches this calculation exactly, so the correct answer should be C, not B. On rechecking, the initial calculation confirms option C is correct.