The compound interest (in Rs. nearest to a rupee) on a sum of Rs. 7500 at 24% p.a. for 3 months, interest compounded monthly is:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 459
P = 7500
r = 24% = 24/12 = 2% (compounded monthly)
n = 3 months = 3 × 12 = 36 months = 3 years
CI = P{(1 + r/100)n - 1}
CI = 7500 × {(1 + 2/100)3 - 1}
CI = 7500 × (7651/125000)
CI = 459.06