A sum of Rs. 6500, at simple quarterly interest of 8% p.a., will result in what amount in 2 and half years?
Answer & explanation
Correct answer: option 4
According to the question:
Principle: 6500, Rate of Interest - 8% p.a., Rate - 2% (quarterly) Time - 10 quarters ( 2 \(\frac{ 1}{ 2}\) years)
Formulae for SI = \(\frac{\text{P Χ R Χ T} }{ 100}\)
Putting the values in the formulae:
SI = \(\frac{\text{6500 Χ 2 Χ 10 }}{ 100}\)
SI = \(\frac{\text{130000} }{ 100}\)
SI = 1300
Amount = Principle + Simple interest
Amount = 6500 + 1300
Amount = 7800