Question

What will be the compound interest on ₹8,000 at $20\%$ per annum for 9 months compounded quarterly?

• A. ₹1260
• B. ₹1261
• C. ₹1271
• D. ₹1280

Answer 1

The correct option is B ₹1261

Here, P = ₹ 8,000, R$=20\%$ per annum$n=9months=\frac{9}{12}yr=\frac{3}{4}year$

$A=P{[1+\frac{R}{4\times 100}]}^{4n}=8000{[1+\frac{20}{400}]}^{4\times \frac{3}{4}}$
$=8000{\left[\frac{21}{20}\right]}^3$
$=8000\times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}=₹9261$

$\therefore CI=A-P=9261-8000=₹1261$