The compound interest on ₹ 25000 at 8%

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Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

The compound interest on ₹ 25000 at 8% per annum for 6 months when compounded quarterly is

Options:

₹ 2010

₹ 1010

₹ 4040

₹ 2020

Correct Answer:

₹ 1010

Explanation:

6 months = 2 quarters & rate quarterly

Rate will be = 8/4 = 2%

Time will be = 6 × 4 = 24 months or 2 years.

C.I. = 25000[(1 + 2/100)^2 - 1]

= Rs1010