1.

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

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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