What is the compound interest on a sum o

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Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

What is the compound interest on a sum of ₹37500 for \(1\frac{1}{3}\)year at a rate of 12% p.a. If the interest is compounded 8-monthly?

Options:

₹6440

₹6240

₹6420

₹6448

Correct Answer:

₹6240

Explanation:

\(1\frac{1}{3}\) year = 16 months, and

Rate of Interest = 12% per annum = 8% per 8 months

8% = \(\frac{2}{25}\)

Now,

ATQ,

Principal = 625R = 37500

1R = 60

C.I. = 104R = 104 × 60 = Rs.6240