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Simple & Compound Interest · Question 41 of 60

Question 41

MediumOriginal question

Find the compound interest on ₹16,000 for 9 months at 20% per annum, compounded quarterly.

Options for question 41

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. Rate per quarter = 20%÷4=5%20\% \div 4 = 5\%; 9 months = 3 quarters.

  2. Amount = 16000×(1.05)3=16000×1.157625=1852216000 \times (1.05)^3 = 16000 \times 1.157625 = 18522.

  3. CI = ₹18,522 − ₹16,000 = ₹2,522.

Worth noting

₹2,400 is simple interest for 9 months. ₹11,648 uses 20% for each quarter. ₹18,522 is the amount.

Concept
Quarterly compounding: quarter the rate, count quarters
Typical time
60 s
Your time
—
The rule this testsCompound interest
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