Find the compound interest on Rs. 1,25,000 for 9 months at 8% per annum compounded quarterly.
Answer & explanation
Correct answer: option 2
We know that,
If we are talking about compounded quarterly then R = R/4 and T = 4T
So, according to the question,
Rate R = 8% = 8/2 = 2%
Time = 9 months = 9 × 4 = 36 months or 3 years
So, the compound interest for 3 years at 2% rate = 6.1208%
So, CI = 6.1208% of 125000 = 7651