Find the amount to which Rs. 6,250 rises when compound interest is earned at 16% p.a. for 9 months compounded quarterly?
1. Rs. 7,280
2. Rs. 7,030.4
3. Rs. 7,000
4. None of these
1. Rs. 7,280
2. Rs. 7,030.4
3. Rs. 7,000
4. None of these
Correct Answer – Option 2 : Rs. 7,030.4
Given:
Sum of money = Rs. 6,250
Rate of interest = 16%
C.I. is compounded quarterly for 9 months.
Concept used:
Amount = P × (1 + R/400)4T
Calculation:
⇒ Rs. 6,250 × (1 + 16/400)(9/12) × 4
⇒ Rs. 6,250 × (1 + 0.04)3
⇒ Rs. 6,250 × 1.124864
⇒ Rs. 7030.4
∴ The amount rises to Rs. 7,030.4 when compound interest is earned at 16% p.a., compounded quarterly for 9 months