Multiple choice

what will be the compound interest earned on a sum of Rs. 160000 for 3 years when the interest rate is 20% which is calculated every 9 months ?

  1. 119880

  2. 119650

  3. 119885

  4. 119841
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When interest is compounded every 9 months, the annual rate of 20% converts to 15% per period (20% × 9/12). In 3 years, there are 4 compounding periods. Amount = 160000(1.15)^4 ≈ 279841, so CI ≈ 119841. If 20% per 9-month period were used, CI would be ~171776, which matches no option.

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