1.

What is the compound interest on a sum of Rs. 13,000 at 15% p.a. in 2 years, if the interest is compounded 8-monthly?1. Rs. 4,4042. Rs. 4,3303. Rs. 4,0334. Rs. 4,303

Answer» Correct Answer - Option 4 : Rs. 4,303

Given:

Principal = Rs.13000 

Rate of interest = 15%

Effective rate of interest = 15 × 8/12 = 10%

and 2 years = 24 months = 3 eight monthly

Formula:

Let P = Principal, R = rate of interest and N = time period

Compound interest = P(1 + R/100)- P

Calculation:

∴ Compound interest = 13000(1 + 10/100)- 13000 = Rs.4303

For compound interest calculated eight monthly

R = (original rate) × 8/12

Time convert into months.



Discussion

No Comment Found

Related InterviewSolutions