Multiple choice

What would be the approximate compound interest in 9 months of a sum of 1600 at the rate of interest 6% per annum when rate of interest is considered quarterly?

  1. Rs.73.2

  2. Rs.73.3

  3. Rs.73

  4. Rs.75

  5. Rs.77
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For quarterly compounding, the rate per quarter is 6%/4 = 1.5% and time is 9 months = 3 quarters. Using A = P(1 + r/100)^n, we get A = 1600 × (1.015)^3 ≈ 1673.09, so CI ≈ 73.09. Rounding to the nearest rupee gives Rs.73, which matches option C.

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