ABC26GN4124 · Compound Interest

Subject: General Aptitude · Chapter: Compound Interest · Exam: 2006 · Marks: · Difficulty:

Find the compound interest on ` 16000 at 20% per annum for 9 months, compounded quarterly.

Answer

Answer (as printed):

Explanation

Principal = ` 16000; Time = 9 months = 3 quarters; Rate = 20% per annum = 5% per quarter.   5   3  21 21 21  ∴ Amount = ` 16000 ×  1 +   = `  16000 × × ×  = ` 18522.   100    20 20 20  ∴ C.I. = ` (18522 – 16000) = ` 2522.

Explanation as extracted from the printed page; notation may be imperfect.

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