Correct Answer - Option 4 : Rs. 405
Formula:
Let P = Principle, R = rate of interest and N = time period
Compound interest (annually) = P(1 + R/100)N – P
Compound interest (half - yearly) = P{1 + (R/2)/100}2N – P
Calculation:
Here, P = Rs. 2000, R = 10% and N = 1
Compound interest (annually) = 2000(1 + 10/100)1 – 2000 = Rs. 200
Compound interest (half - yearly) = 2000(1 + (10/2)/100)2 – 2000 = Rs. 205
Total compound interest = 200 + 205 = Rs. 405
∴ The total compound interest is Rs. 405.