Question 137

The compound interest on a sum of Rs. 5000 at 8% per annum for 9 months when interest is compound quarterly is:

Solution

Principal sum = Rs. 5000

Rate of interest = 8% and time period = $$\frac{9}{12}=\frac{3}{4}$$ years

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

= $$5000[(1+\frac{8}{400})^{\frac{3}{4}\times4}-1]$$

= $$5000[(1+\frac{1}{50})^3-1]$$

= $$5000[(\frac{51}{50})^3-1]$$

= $$5000\times(\frac{132651-125000}{125000})$$

= $$\frac{7651}{25}=Rs.$$ $$306.04$$

=> Ans - (C)

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