The Compound interest on Rs 16000 for 9 months at 20% P.a compounded quarterly is:__________?
Correct answer: C. Rs 2522
- A. Rs 2518
- B. Rs 2520
- C. Rs 2522
- D. Rs 2524
Explanation
Nine months contain three quarterly periods, and the rate per quarter is 20% / 4 = 5%. The compound interest is 16,000 Rs x [(1.05)^3 - 1] = 16,000 Rs x 0.157625 = 2,522 Rs. Students may choose 2,520 Rs by rounding the growth factor before multiplying.
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Percentages express a quantity as parts per hundred and support calculations involving increases, decreases, discounts, commissions, taxes, and successive changes. Questions require distinguishing percentage change from percentage points and identifying the original value when a final value and its percentage change are given.
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