Find the compound interest on ₹64000 at 10% per annum for 9 months when interest is compounded quarterly.
Answer & explanation
Correct answer: option 3
Principal = Rs. 64,000, Rate = 10%
Time = 9 months, Condition = Quarterly
Time = Time × 4, Rate = Rate/4
Calculations:
New time = 1 × 9 months = 3 years
New Rate = 10/4 = (5/2) %
(5/2)% = 1/40
Principal Amount
40 41
40 41
40 41
Total principal = Total Amount =
40 × 40 × 40 41 × 41 × 41
= 64000 = 68921
Interest = 68921 – 64000 = 4921
64000 = 64,000 ( Given)
then Interest = 4921 = 4921