Question

Q. What is the compound interest on Rs 20,000 at 20% per annum, for 9 months, compounded quarterly?

• A. 3152.5
• B. 3162.5
• C. 3252.5
• D. 3352.5
• E. None of these

Answer 1

The correct option is A 3152.5

Time = 9 months = 3
quarters Rate = 20% per annum = 5% per quarter
Amount after 9 months $=20000\times (1+\frac{5}{100}{)}^3=20000\times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}=23152.5\text{Total interest =}23152.5-20000=3152.5$