Multiple choice

Find compound interest on Rs. $3000$ for two year at $8\%$ per annum compounded quarterly.

  1. $524.98$
  2. $534.98$
  3. $544.98$
  4. $514.98$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

P = 3000, R = 8 percent p.a. = 2 percent per quarter, T = 2 years = 8 quarters. A = 3000 * (1.02)^8 = 3000 * 1.171659 = 3514.98. CI = 3514.98 - 3000 = 514.98.

AI explanation

Using the compound interest formula Amount = P x (1 + R/100)^n, the principal is 3000, the quarterly rate is 2 percent, and the total number of quarters in 2 years is 8. The total amount evaluates to 3000 x (1.02)^8, which equals 3514.98 rupees. Subtracting the principal of 3000 from this amount yields a compound interest of 514.98 rupees.

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