Question

$Rs.2,000$ is invested at annual rate of interest of $10$%. What is the amount after two years if compounding is done quarterly?

• A. $2,420$
• B. $2,431$
• C. $2,436.80$
• D. $2440.58$

Answer 1

The correct option is C $2,436.80$

For quarterly compounding
$n=4\times 2=8$
$A_8=2000(1+0.025{)}^8$
$=2,000\times 1.2184$
$=Rs.2,436.80$.