The simple interest on a sum of ₹ 8,000 at a certain rate percent per annum for 3 years is ₹ 3,600. What will be the amount (in ₹) of the same sum after 2 years at the same rate, if the interest is compounded 8-monthly?
Answer & explanation
Correct answer: option 4
Formula used :-
Simple Interest = \(\frac{P × R × T }{100}\)
3600 = \(\frac{8000 × R × 3 }{100}\)
R = 15%
Interest is compounded 8 monthly . So, Effective rate = 15% × \(\frac{8 }{12}\)
= 10%
Amount = P$(1 \;+\; \frac{R}{100})^t$
= 8000 × [ 1 + \(\frac{10 }{100}\) ]³
= 8000 × [ \(\frac{11 }{10}\) ]³
= 8000 × \(\frac{11 }{10}\) × \(\frac{11 }{10}\) × \(\frac{11 }{10}\)
= Rs. 10648