Question
The compound interest on Rs.16,000 for 9 months at 20% per annum, interest being compounded quarterly, is
Answer: Option C Answer: (c)Using Rule 1,The interest is compounded quarterly.R = $20/4$ = 5%Time = 3 quartersC.I. = P$[(1 + R/100)^T - 1]$= 16000$[(1 + 5/100)^3 - 1]$= $16000[(21/20)^3 - 1]$= $16000({9261 - 8000}/8000)$= $16000 × 1261/8000$ = Rs.2522
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