Question 129

What is the compound interest on a sum of ₹37,500 for $$1\frac{1}{3}$$ years at a rate of 12% p.a. if the interest is compounded 8-monthly?

Solution

Principal sum = Rs. 37,500 and rate of interest = 12%

Amount when compounded 8 monthly = $$P(1+\frac{2R}{300})^{\frac{3t}{2}}$$

= $$37500(1+\frac{12\times2}{300})^{\frac{4}{3}\times\frac{3}{2}}$$

= $$37500(\frac{27}{25})^2$$

= $$60\times27\times27=Rs.$$ $$43,740$$

$$\therefore$$ Compound interest earned = Rs. $$(43,740-37,500)=Rs.$$ $$6,240$$

=> Ans - (B)

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