Question

If Mohan invested ₹ 18000 in a bank for $\frac{1}{2}$ year which give compound interest at a rate of 3% quarterly, what is the amount that Mohan will receive after $\frac{1}{2}$ year ?

• A. Rs 19096.2
• B. Rs 21,096.2
• C. Rs 19,196.2
• D. Rs 19,396.3

Answer 1

The correct option is A Rs 19096.2

Here, Principal (P) = ₹ 18000

Rate of interest (R) = 3%

Time (n) = $\frac{1}{2}$ years
Time (n) = 2 quarter years

$A=P(1+\frac{r}{100}{)}^n$

$=18,000(1+\frac{3}{100}{)}^2$

$=18,000(\frac{103}{100}{)}^2$

$=18,000\times \frac{103}{100}\times \frac{103}{100}$

= 19,096.20
The amount Mohan will receive after two years is ₹19,096.20