Compound interest on ₹16000 at 20% per annum for 9 months, compounded quarterly is:
Answer & explanation
Correct answer: option 3
Amount = Principal × ( 1 + \(\frac{r}{ 100 }\) )n
9 months = 3 quarter
Net rate = \(\frac{ 20 }{ 4 }\)% = 5%
A = P × ( 1 + \(\frac{5}{ 100 }\) )³
A = 16000 × ( 1 + \(\frac{5}{ 100 }\) )³
= 16000 × ( \(\frac{21}{ 20 }\) )³
= 16000 × \(\frac{9261}{ 8000 }\)
= 18522
Amount = Principal + Compound Interest
18522 = 16000 + Compound Interest
Compound Interest = 2522
(3) → ₹2522