Multiple choice

Mr. Akhil invested Rs. 13,500 in FD. How much will he get on maturity, if he invested it at 20% per annum compound interest for 6 months, compounded quarterly?

  1. Rs. 14,885.35

  2. Rs. 14,883.75

  3. Rs. 14,887.5

  4. Rs. 14,885
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The principal is 13,500, the rate is 20% per annum, and the time is 6 months. Compounded quarterly means the rate per quarter is 5% and the number of periods is 2. Amount = 13,500 * (1 + 0.05)^2 = 13,500 * 1.1025 = 14,883.75.

AI explanation

Using the compound interest formula Amount = P(1 + R/100)^n, the principal is Rs. 13,500, the quarterly rate is 20/4 = 5%, and the number of compounding periods for 6 months is 2. The amount equals 13500 multiplied by 1.05 squared, which is 13500 times 1.1025, yielding Rs. 14,883.75.

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