A sum is taken for two years at 16% p.a. If interest is compounded aft

1.	A sum is taken for two years at 16% p.a. If interest is compounded after every three months, the number of times for which interest is charged in 2 years is:(a) 8 (b) 4 (c) 6 (d) 9
Answer» (a) 8 Explanation: Rate of interest is compounded after every three months. Thus, the time period for amount in a year will be 4 times. If amount is taken for 2 year, then 4 × 2 = 8 times charged in 2 year.

A sum is taken for two years at 16% p.a. If interest is compounded after every three months, the number of times for which interest is charged in 2 years is:(a) 8 (b) 4 (c) 6 (d) 9

Answer»

(a) 8

Explanation:

Rate of interest is compounded after every three months.

Thus, the time period for amount in a year will be 4 times.

If amount is taken for 2 year, then 4 × 2 = 8 times charged in 2 year.