Find the compound interest on $50000 in 2years at 4% per annum, the interest being compounded half-yearly? Choose the correct option.
A) $ 645.56
B) $ 4121.60
C) $ 954.26
D) $ 745.69
E) $ 1020.45

Rationale: principle = $ 50000 rate = 2 % half yearly = 4 half years amount = 50000 * ( 1 + 2 / 100 ) ^ 4 = 50000 * 51 / 50 * 51 / 50 * 51 / 50 * 51 / 50 = $ 54121.60 c . i . = 54121.60 - 50000 = $ 4121.60 answer is b
Answer: B