Question

Find the compound interest for $Rs.1,000$ for $4$ years at $5$% p.a. when it is compounded quarterly.

• A. $220$
• B. $218$
• C. $215$
• D. $250$

Answer 1

The correct option is A $220$

$CI=1,000{(1+\frac{\frac{5}{4}}{100})}^{4\times 4}-1,000$
$=1,000(1.05{)}^{16}-1,000$
$=1,219.89-1,000=219.89$ say $220$.