Question

Asha has given Rs. 7500 to a labour compounded quarterly for 6 months at the rate 8% per annum.  Find the compound interest.
1. Rs 200
2. Rs 303
3. Rs 403
4. Rs 400
5. Rs 500

Answer 1

Correct Answer - Option 2 : Rs 303

Given:

Asha given to labour = Rs 7500

Time  = 6 months

Rate of interest = 8%

Formula:

A = P(1+ R/400)⁴ⁿ     (when interest calculated quarterly) 

Calculation:

A = P(1+ R/400)⁴ⁿ

⇒ 7500 (1 + 8/400)^4(1/2)

⇒ 7500 (1 + 1/50)²

⇒ 7500(51/50)²

⇒ 7500(2601/2500)

⇒ 7803

CI = A – P

⇒ 7803 – 7500

⇒ 303 Rs.

∴ CI for given sum is Rs. 303