Question

The C.I. to be paid when a sum of ₹ 30,000 is taken for one year at 8% per annum compounded quarterly is

• A. ₹ 2,1243 (approx)
• B. ₹ 2,383 (approx)
• C. ₹ 2,243 (approx)
• D. ₹ 2,473 (approx)

Answer 1

The correct option is D

₹ 2,473 (approx)

Given P = ₹ 30,000; R = 8 % 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 = $\frac{PRT}{100}$

= $\frac{30000\times 8\times 1}{4\times 100}$ = $₹600$

For the second quarter ,

P = 30000 + 600 = ₹ 30,600

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

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

= $\frac{30600\times 8\times 1}{4\times 100}$ = $₹612$

For the third quarter ,

P = 30600 + 612 = ₹ 31,212

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

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

= $\frac{31212\times 8\times 1}{4\times 100}$ = $₹624.24$

For the fourth quarter,

P = 31212 + 624.24 = ₹ 31836.24

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

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

= $\frac{31836.24\times 8\times 1}{4\times 100}$ = $₹636.7248$

Hence the total C.I = ₹ ( 600 + 612 + 624.24 + 636.7248 )

= ₹ 2,472.9648, which is approximately ₹ 2,473