Question

A sum is taken for two years at $16\%$ p.a. If interest is compounded after every three months, the number of times for which interest is charged in $2$ years is: (a) (b) (c) (d)

• A. $8$
• B. $4$
• C. $6$
• D. $9$

Answer 1

The correct option is A

$8$

Cost price: The amount paid for a product.

Selling Price: The amount at which the product is sold

Marked Price: The price mentioned by the shopkeeper is more than the selling price, to give a discount to the buyer.

Simple Interest (S.I.) is the method of calculating the interest amount for a particular principal amount of money at some rate of interest. The rate of interest is compounded after every three months.

Given

Since the rate of interest is calculated after every three months. Similarly, the time period for the amount in a year will be $4$ times.

If the amount is taken for $2$ yr.

$4\times 2=8$ times charged in $2$yr.

Hence, option A is correct.