Question

Find the compound interest on Rs. $12500$ at $8$% per annum for $9$ months compounded quarterly .

• A. $1020$
• B. $1428$
• C. $765$
• D. $550$

Answer 1

The correct option is C $765$

Principle $=Rs.12500$, Time period $=9$ months

$1$ quarter $=3$ months

$3$ quarter $=9$ months

Time period $=3$ quarters

Rate of Interest $=8\%$ per annum

$1$ annum $=4$ quarters

Rate of Interest $=2\%$ per quarter

Amount = Principle $\times {[1+\frac{RateofInterest}{100}]}^{Timeperiod}$

$=12500\times {[1+\frac{2}{100}]}^3$

$=12500\times (1.02{)}^3$

Amount$=Rs.13265$

Compound Interest$=$Amount $-$ Principle

$=Rs.13265-Rs.12500$

Compound Interest$=Rs.765$

Answer is option ${}^{\prime }{C}^{\prime }$