Question

What will the compound interest on Rs 15000 for 1 year at 4% per annum compounded quartely .


I want step by step explaination

Answer is Rs 609.06​

Answer 1

Answer:

English

Home Quantitative Aptitude Interest Compound Interest

Question

What is the CI of 1 year of sum Rs. 15000 at the rate of 40% p.a, if interest compounded quarterly?

Rs. 6961.1

Rs. 4641.1

Rs. 5333.1

Rs. 7125.3

Answer (Detailed Solution Below)

Option 1 : Rs. 6961.1

Free Tests

View all Free tests >

FREE

ICMR Assistant 2021: Full Mock Test

80 Qs. 80 Marks 80 Mins

Detailed Solution

Sum = Rs. 15000

Rate of interest = 40%

Formula:

A = P (1 + r/100)t

If interest compounded quarterly, then

Rate = r/4

Time = 4t

Calculation:

Rate = 40/4 = 10%

Time = 1 × 4 = 4

Hence,

CI = 15000 [(1 + 10/100)4 – 1]

⇒ CI = 15000 [(11/10)4 – 1]

⇒ CI = 15000 × [14641/10000 – 1]

⇒ CI = 15000 × [(14641 – 10000)/10000]

⇒ CI = 15000 × (4641/10000)

⇒ CI = 6961.5

∴ The CI is Rs. 6961.5