Correct Answer: Option A
For CI payable at half-yearly, the Amount = P ( 1+ r/2/100)2n
i.e. 4200 ( 1+ 16/2/100)2n = 4898.88
i.e. 4200 (1 + 8/100) 2n = 4898.88
4200( 1+ 2/25)2n = 4898.88
i.e. (27/25)2n = 4898.88/4200 = 489888/420000 = 729/625 = (27/25)2×1
i.e. (27/25)2n = (27/25)2×1
therefore the time ‘n’ = 1 year.
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