Question

Find the interest on Rs. 4000 for 6 months at the rate of 12% p.a. compounded quarterly.
1. Rs. 240
2. Rs. 243.6
3. Rs. 243
4. Rs. 234.6

Answer 1

Correct Answer - Option 2 : Rs. 243.6

Given, 

P = 4000 ,

Time(t) = 6 months 

Rate(r) = 12% per annum

Concept used,​

A = P (1 + r/100)^t

A = Amount, P = Principal

Calculation 

A = P (1 + r/100)t 

Compound Quarterly 

r = 12/4 = 3%

t = 6 month/3 = 2

A = 4000 (1 + 3/100)2

⇒ A = 4000 (103/100)2

⇒ A = 4243.6 

then CI = A - P = 4243.6 - 4000 

⇒ CI = 243.6 

∴ The Compounded interest(CI) = 243.6