Question

Find the amount to be paid for a sum of ₹ 10,000 for a period 1 and a half years at 8% per annum, compounded quarterly.

• A. ₹ 10,212 (approx.)
• B. ₹ 10,412 (approx.)
• C. ₹ 10,612 (approx.)
• D. ₹ 10,812 (approx.)

Answer 1

The correct option is C

₹ 10,612 (approx.)

Here, Principal (P) = ₹ 10,000

Rate of interest (R) = 2% (rate of interest of 8% per annum is equivalent to a rate of interest of 2% per 3 months, as interest is compounded quarterly)
Time (n) = 6, as one and a half years has six 3 months in it.
$Amount\left(A\right)=P{(1+\frac{R}{100})}^n$

=$10000{(1+\frac{2}{100})}^6$

=$10000{(1+\frac{1}{50})}^6$
=$10000{\left(\frac{51}{50}\right)}^6$

=$10000\times \frac{51}{50}\times \frac{51}{50}\times \frac{51}{50}$
= ₹ 10,612.08

= ₹ 10,612 (approx.)