Question : The compound interest on Rs. 12000 for 9 months at 20% per annum, interest being compounded quarterly is:
Option 1: Rs. 1,750
Option 2: Rs. 2,089.70
Option 3: Rs. 1,891.50
Option 4: Rs. 2,136.40
New: SSC CHSL tier 1 answer key 2024 out | SSC CHSL 2024 Notification PDF
Recommended: How to crack SSC CHSL | SSC CHSL exam guide
Don't Miss: Month-wise Current Affairs | Upcoming government exams
New: Unlock 10% OFF on PTE Academic. Use Code: 'C360SPL10'
Correct Answer: Rs. 1,891.50
Solution : Given: The Principal amount is Rs. 12,000, the annual interest rate (in decimal form) is 20% per annum, the number of times interest is compounded per year is 4 and the time the money is invested for (in years) is 9 months, which is $\frac{9}{12}=\frac{3}{4}$ years. We know the formula, $A = P × (1 + \frac{r}{n})^{n × t}$. Substitute the given values in the above formula, we get, $A = 12000 × (1 + \frac{0.20}{4})^{4 × \frac{3}{4}}$ ⇒ $A = 12000 × (1 + 0.05)^{3}$ ⇒ $A = 12000 × (1.05)^{3}$ ⇒ $A = 13891.5$ Compound interest is given as A – P. = 13891.50 – 12000 = Rs. 1,891.50 Hence, the correct answer is Rs. 1,891.50.
Candidates can download this e-book to give a boost to thier preparation.
Result | Eligibility | Application | Admit Card | Answer Key | Preparation Tips | Cutoff
Question : Rs. 6000 is lent at the rate of 20% per annum on compound interest (compounded half yearly). What will be the compound interest of 18 months?
Question : At what rate of compound interest (compounding annually) per annum will a sum of Rs. 1,000 become Rs. 1,060.90 in 2 years?
Question : A person borrowed Rs. 8000 on compound interest at the rate of 20% per annum. If the interest is compounded half-yearly, then what will be the amount to be paid after 1.5 years?
Question : The simple interest accrued on a certain principal is Rs. 1200 in 3 years at 8% per annum. What would be the compound interest (compounding annually) accrued on twice that principal at 10% per annum in 2 years?
Question : What is the difference between the compound interest on INR 6,400 for 1 year at 5% per annum compounded yearly and half-yearly?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile