Consider the compound interest in the following cases:

(A) The compound interest on Rs 16000 at 20% per annum for 9 months, compounded quarterly is Rs. 2500
(B) The compound interest on Rs 2800 at 10% per annum for 18 months is Rs. 434.

Choose the correct statment(s):e correct statment(s):

Only (B)

The correct answer is Option (2) → Only (B)

Let’s check each statement.

(A)

Principal = ₹16000
Rate = 20% p.a. ⇒ 5% per quarter
Time = 9 months = 3 quarters

$\text{Amount} = 16000(1.05)^3 = 16000 \times 1.157625 = ₹18522$

$\text{CI} = 18522 - 16000 = ₹2522 \neq ₹2500$

Statement (A) is incorrect

(B)

Principal = ₹2800
Rate = 10% p.a.
Time = 18 months = $1\frac{1}{2}$​ years

For annual compounding:

• After 1 year:

$2800 \times 1.10 = 3080$

• Simple interest for next 6 months:

$3080 \times 10\% \times \frac{1}{2} = 154$

Final amount = 3080 + 154 = 3234

$\text{CI} = 3234 - 2800 = ₹434$

Statement (B) is correct