The compound interest on ₹ 25000 at 8% per annum for 6 months when compounded quarterly is
Answer & explanation
Correct answer: option 2
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