The compound interest on Rs.12000 for 9 months at 20% per annum :

The compound interest on Rs.12000 for 9 months at 20% per annum, interest being compounded quarterly is:

  1. Rs.2089.70
  2. Rs.1750
  3. Rs.2136.40
  4. Rs.1891.50
Anurag Mishra Professor Asked on 11th December 2015 in Maths.
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  • 1 Answer(s)

    Answer: (4) Rs. 1891.50

    Explanation:-
    Given-
    Principal = Rs. 12, 000,   Time = 9 months  & rate = 20% per quarterly.

    Formula-
    Compound Interest = P [(1 + R/100)t – 1]
    Where, P = principal, R = rate, t = time.

    Then, Compound interest = 12, 000 [(1 + 20/4 x 100)³ – 1]  { If rate of compound interest quarterly, time becomes 4 times and rate of interest 1/4 time}

    = 12, 000 [(1 +1/20)³ – 1]
    = 12, 000 [(21/20)³ – 1]
    = 12, 000 x 21 x 21 x 21/20 x 20 x 20 – 12, 000
    = 3 x 9261/2 – 12, 000
    = 13891.5 – 12, 000
    = Rs. 1891.5

    Hence, the answer is (4)  Rs. 1891.50.

     

    Anurag Mishra Professor Answered on 11th December 2015.
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