Question

The compound interest on Rs. $16000$ for $9$ months at $20\%$ p.a. compounded quarterly is

• A. Rs. $2518$
• B. Rs. $2520$
• C. Rs. $2522$
• D. Rs. $2524$

Answer 1

The correct option is C Rs. $2522$

Given, $P=$ Rs. $16000,r=20\%$ p.a. $=20/4=5\%$ per quarter,

Time $=9$ months$=\frac{9}{12}$ years $=\frac{9}{12}\times 4$quarters $=3$ quarters

$Amount=P{(1+\frac{R}{100})}^N$

$\therefore A=16000{(1+\frac{5}{100})}^3$

$=16000\times {\left(\frac{21}{20}\right)}^3$

$=16000\times \frac{21\times 21\times 21}{8000}$

$=$ Rs. $18522$

Therefore, C.I. $=$ Rs. $18522-$ Rs. $16000=$ Rs. $2522$