Find the compound interest on a sum of Rs. 12000 at 12% p.a. for 9 months when interest is compounded quarterly.
Answer & explanation
Correct answer: option 1
Net rate ( when compounded quarterly) = \(\frac{12}{4}\) = 3%
C.I. of 9 months = (360 × 3) + (10.8 × 3) + 0.324
= 1080 + 32.4 + 0.324 = 1112.724