Question

A sum is taken for 2 yrs at 16% p.a. If interest is compounded every three months,the no. of times interest is charged in 2 yrs is . (step-by-step explanation pls)

Answer 1

Answer:

Rate of interest is compounded after every three months. Thus, the time period for amount in a year will be 4 times. If amount is taken for 2 year, then 4 × 2 = 8 times charged in 2 year