Question

    A principal of ₹10000 is invested at a compound

    interest rate of 12% per annum compounded quarterly. What will be the amount after 1/2 year?
    A ₹11236 Correct Answer Incorrect Answer
    B ₹10609 Correct Answer Incorrect Answer
    C ₹11304 Correct Answer Incorrect Answer
    D ₹11340 Correct Answer Incorrect Answer

    Solution

    Quarterly rate = Annual rate / 4 = 12/4 = 3% Number of quarters in 1/2 year = 2 Amount = Principal * (1 + Rate/100)Time Amount = 10000 * (1 + 3/100)² = 10,609 Answer:  (B)

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