Question 125

The compound interest on ₹12000 for 9 months at 20% per annum, interest being compounded quarterly is:

Solution

Principal amount = Rs. 12,000 at rate of interest = 20%

Time period = $$\frac{9}{12}=\frac{3}{4}$$ years

Compound interest compounding quarterly = $$P[(1+\frac{R}{400})^{4T}-1]$$

= $$12,000[(1+\frac{20}{400})^{4\times\frac{3}{4}}-1]$$

= $$12,000[(1+\frac{1}{20})^3-1]$$

= $$12,000[(\frac{21}{20})^3-1]$$

= $$12,000\times(\frac{9261-8000}{8000})$$

= $$1.5\times1261=Rs.$$ $$1891.50$$

=> Ans - (B)

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