Question

The compound interest on ₹ 16000 for 9 months at 20% p.a, compounded quarterly is ₹ 2522

पर्याय

• True

• False

Answer 1

True

Explanation;

Hint:

Principal (P) = 16000

n = 9 months = `9/12` years

r = 20% p.a

For compounding quarterly, we have to use below formula,

Amount (A) = `"P" xx (1 + "r"/100)^(4"n")`

Since quarterly we have to divide ‘r’ by 4

r = `20/4` = 5%

A = `1600(1 + 5/100)^(9/12 xx 4)`

= `16000(105/100)^(9/12 xx 4)`

= `16000(105/100)^(9/3)`

= `16000 xx (21/20)^3`

= `16000 xx 21/20 xx 21/20 xx 21/20`

= 18522

∴ Interest A – P = 18522 – 16000 = 2522