What is the amount after one year on Rs. 10,000 at a nominal rate of 8% per annum compounded quarterly?
Correct answer: B. Rs. 10,824.32
- A. Rs. 10,800.00
- B. Rs. 10,824.32
- C. Rs. 10,864.00
- D. Rs. 10,832.00
Explanation
The quarterly rate is 8% divided by 4, or 2%, and there are four compounding periods. Thus, the amount is 10,000(1.02)^4 = Rs. 10,824.32.
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