Question

If you deposited $200$ in one-year investment that paid interest at the rate of $12$% compounded quarterly, what amount would you have after $1$ year?

• A. $275$
• B. $200$
• C. $150$
• D. $225$

Answer 1

The correct option is D $225$

Here, $P=200,R=12\%p.a$ and $T=1$ year

$\Rightarrow$ $A=P{(1+\frac{R}{4\times 100})}^{4T}$

$\Rightarrow$ $A=200\times {(1+\frac{12}{4\times 100})}^4$

$\Rightarrow$ $A=200\times \frac{103}{100}$

$\Rightarrow$ $A=225$