Find the compound interest on a sum of Rs.40,000 at 20% p.a. for 2 years 3 months when the interest is compounded 9 monthly.
Answer & explanation
Correct answer: option 2
Interest rate when compounded 9 monthly = \(\frac{9}{12}\) ×20% = 15%
2 year 3 months = 27 months (creates 3 cycle)
Compound interest for 3 cycle of 9 months at the rate of 15% = \(\frac{3}{20}\)
Principal : Amount
20 : 23
20 : 23
20 : 23
8000 : 12167
⇒ C.I = Amount - Principal = 4167
⇒ 8000R = 40000
⇒ 1R = 5
⇒ C.I. = 4167 × 5 = 20,835