Question

The C.I. to be paid when a sum of ₹ 10,000 is taken for one year at 10% per annum compounded quarterly is

• A. ₹ 938 (approx)
• B. ₹ 1,038 (approx)
• C. ₹ 1,138 (approx)
• D. ₹ 1,238 (approx)

Answer 1

The correct option is B

₹ 1,038 (approx)

Given, P = ₹ 10,000; R = 10 % and T = 1 year

Given, compound Interest is compounded quarterly.

Hence C.I for the first 3 months or the first quarter is given by

C. I = $\frac{PRT}{100}$

= $\frac{10000\times 10\times 1}{4\times 100}$ = $₹250$

For the second quarter,

P = 10000 + 250 = ₹ 10,250

Hence C. I for the second quarter is given by,

C.I = $\frac{PRT}{100}$

= $\frac{10250\times 10\times 1}{4\times 100}$ = $₹256.25$

For the third quarter,

P = 10250 + 256.25 = ₹ 10506.25

Hence C. I for the third quarter is given by,

C.I = $\frac{PRT}{100}$

= $\frac{10506.25\times 10\times 1}{4\times 100}$ = $₹262.65625$

For the fourth quarter,

P = 10506.25 + 262.65625 = ₹ 10,768.90625

Hence C. I for the fourth quarter is given by,

C.I = $\frac{PRT}{100}$

= $\frac{10,768.90625\times 10\times 1}{4\times 100}$ = $₹269.22265625$

Hence the total C.I = ₹ ( 250 + 256.25 + 262.65625 + 269.22265625 )

= ₹ 1038.12890625, which is approximately ₹ 1,038