Questions & Answers

Question

Answers

A. Rs. 1175

B. Rs. 7651

C. Rs. 7561

D. Rs. 6056

Answer
Verified

Hint: Such types of questions can be solved with the help of the formula of compound interest. Here interest is compounded quarterly so we convert the interest rate annum to quarterly as well as total times in a number of quarters.

__Complete step-by-step solution -__

Given, P=125000,

As compounded quarterly R = $\dfrac{8}{4}$ = 2%

Time = 9 months = $\dfrac{9}{{12}}years = \dfrac{9}{{12}}$ ×4 quarters =3 quarters

We know, Amount = A = ${\left( {1 + \dfrac{R}{{100}}} \right)^n}$

A = 125000 ${\left[ {1 + \left( {\dfrac{2}{{100}}} \right)} \right]^3}$ = Rs. 132651

As compound interest C.I = Amount-principle value

C.I = Rs. [132651−125000] = Rs. 7651

Note: Question as mentioned above was solved with the help of the formula of compound interest, as we placed all the required data in the formula and solving it would help in finding the answer. Only with the help of cleared up basics of compound interest would help in solving the data.

Given, P=125000,

As compounded quarterly R = $\dfrac{8}{4}$ = 2%

Time = 9 months = $\dfrac{9}{{12}}years = \dfrac{9}{{12}}$ ×4 quarters =3 quarters

We know, Amount = A = ${\left( {1 + \dfrac{R}{{100}}} \right)^n}$

A = 125000 ${\left[ {1 + \left( {\dfrac{2}{{100}}} \right)} \right]^3}$ = Rs. 132651

As compound interest C.I = Amount-principle value

C.I = Rs. [132651−125000] = Rs. 7651

Note: Question as mentioned above was solved with the help of the formula of compound interest, as we placed all the required data in the formula and solving it would help in finding the answer. Only with the help of cleared up basics of compound interest would help in solving the data.

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