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Prakash invests in an FD. What will be the maturity amount with an annual recurring interest of 20% for 6 months at Rs. 13,000, interest compounded quarterly?A. 14332.25B. 14332.5C. 14332.75D. 143321. D2. B3. A4. C |
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Answer» Correct Answer - Option 2 : B Given: P = Rs. 13000 r = 20% t = 6 months Formula: If interest compounded quarterly, then r = 20/4 = 5% t = 6/12 × 4 = 2 years Calculation: CI = P [(1 + r/100)t – 1] ⇒ CI = 13000[(1 + 5/100)2 – 1] ⇒ CI = 13000 × [105/100 × 105/100 – 1] ⇒ CI = 13000 × (11025 – 10000)/10000 ⇒ CI = 13 × 1025/10 ⇒ CI = Rs. 1332.5 The maturity amount = 13000 + 1332.5 = Rs. 14332.5 |
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