| | Question 30

At what rate per annum will Rs 8000 yield a compound interest of Rs. 1261 in 9 months interest being compounded quarterly?
(A) 5 %
(B) 10%
(C) 15%
(D) 20%


Answer: (D)

Explanation: Let the Rate = 4 R%
Principal = 8000
CI = 9261
Amount = 8000 + 1261 = 9261
Interest is being compounded quarterly
So, Time = 9 x (4 /12) = 3
Rate = 4 R%/4 =R%
Acc . to question

           Principal           Amount
3rd year     8000       :       9261
1st year    ∛8000    :         ∛9261 
              20         :       21
                      +1

Rate (R%) = 1/20 x 100 = 5 %
Required Rate = 4 x 5 = 20%

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