What is the interest payable on ₹12,000 for 3 months at the rate of 10% per annum, if interest is compounded quarterly?

Here the rate of interest is 10% per annum. But as per the question we want interest for 3 months and the rate of interest is compounded on a quarterly basis.

For 12 months = 10%

Divide 4 on both sides.

$$\frac{12}{4}\ months=\frac{10}{4}\%$$

$$3\ months=2.5\%$$

So interest payable on ₹12,000 for 3 months = $$12000\ of\ 2.5\%$$

= $$12000\times\frac{2.5}{100}$$

= $$12000\times\frac{25}{1000}$$

= $$12\times25$$

= 300