Multiple choice

The compound interest on Rs. $16000$ for $9$ months at $20\%$ p.a. compounded quarterly is

  1. Rs. $2518$
  2. Rs. $2520$
  3. Rs. $2522$
  4. Rs. $2524$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Principal = 16000, Time = 9 months (3 quarters), Rate = 20% p.a. = 5% per quarter. Amount = 16000 * (1.05)^3 = 16000 * 1.157625 = 18522. Interest = 18522 - 16000 = 2522.

AI explanation

For quarterly compounding over 9 months, there are 3 conversion periods, making the rate per period 20/4 = 5%. The total amount is calculated as A = 16000 * (1 + 5/100)^3, which simplifies to 16000 * (21/20)^3. This evaluates to Rs. 18522, and subtracting the principal of Rs. 16000 yields a compound interest of Rs. 2522.

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