What is the amount (in Rs) of a sum of Rs 32,000 at 20% per annum for 9 months, compounded quarterly?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 37044
Formula used:
A = P(1 + R/100)T ----- (1)
Where, A = amount, P = principal, R = rate and T = time
Calculations:
When interest is compounded quarterly then
Rate = 20/4 = 5%
Time = 4 × 9/12 = 3
Using equation (1), we get
⇒ A = 32000(1 + 5/100)3
⇒ A = 32000 × (21/20)3
⇒ A = 37044