What is the CI on 16000 for 9 months at 20% per annum interest being compounded quarterly?

Inhaltsverzeichnis

• The compound interest on Rs 8000 at 20% per annum for 9 months compounded quarterly is:a) 1260b) 1261c) 1271d) 1281
• The compound interest on Rs 16000 for 9 months at 20% per annum, interest being compounded quarterly, is = ?
• Solution(By Examveda Team)
• Click here to read 1000+ Related Questions on Compound Interest(Arithmetic Ability)
• What is the compound interest on Rs 16000 at 20% per annum for 9 months compounded quarterly 3 points Rs 2255 Rs 2500 Rs 2000 Rs 2522?
• What is the compound interest on ₹ 20000 for 9 months at the rate of 4% per annum when interest is compounded quarterly?
• What is the compound interest on a sum of Rs 16000 at 30% per annum for an year if compounded half yearly?
• What will be the compound interest of 16000?

The compound interest on Rs 8000 at 20% per annum for 9 months compounded quarterly is:a) 1260b) 1261c) 1271d) 1281

Answer

Verified

Hint: Use the formula of compound interest $C.I.=P{{\left( 1+\dfrac{r}{n} \right)}^{nt}}-P$, where P is the principal (or original amount), r is the annual rate, n is the number of times interest compounded per time period, t is the number of years on which interest has applied.

Complete step-by-step answer:

We are going to use the formula of compound interest which is written below:

$C.I.=P{{\left( 1+\dfrac{r}{n} \right)}^{nt}}-P$

Where P: the Principal (or original amount)

r: annual rate of interest

n: number of times interest compounded per time period

t: number of years on which the interest has applied

It is given that:

The principal (or original amount) is Rs 8000.

Annual rate of interest is 20%.

The interest is compounding quarterly means n = 4.

The interest compounded quarterly for 9 months means $t=\dfrac{9}{12}$year.

Now, substituting these values in the compound interest formula we get,

$\begin{align}

  & C.I.=8000{{\left( 1+\dfrac{20}{100\left( 4 \right)} \right)}^{4\times \dfrac{9}{12}}}-8000 \\

 & C.I.=8000{{\left( 1+(0.25\times 0.2) \right)}^{3}}-8000 \\

 & C.I.=8000{{\left( 1+.05 \right)}^{3}}-8000 \\

 & C.I.=9261-8000 \\

 & C.I.=1261 \\

\end{align}$

So, the compound interest on Rs 8000 at 20% per annum for 9 months compounded quarterly is 1261.

Hence, the correct option is (b).

Note: While applying the formula of compound interest there are some common mistakes that could happen:
When substituting the value of r, don’t forget to divide the rate by 100.
There could be confusion with the “compounded quarterly” statement, it means in a year interest is 4 times compounded so n value will be 4.
And the “t” should be in years if in the question “t” is not given in years first convert it into years then apply in the formula.

• Aptitude
• Simple and compound interest

Correct Answer:

Description for Correct answer:
Principal= Rs. 16000,

Rate %=20 %

Time= 9 months

When interest is being compounded quaterly

Time=\( \Large \frac{9}{12} \times 4=3 \)

Rate =\( \Large \frac{20}{4} \%=5 \%=\frac{1}{20} \)

According to the question,

8000 units = Rs. 16000

1 unit = Rs. 2

1261 units = Rs.\( \Large 2 \times 1261\)

= Rs. 2522

Part of solved Simple and compound interest questions and answers : >> Aptitude >> Simple and compound interest

True

Explanation;

Hint:

Principal (P) = 16000

n = 9 months = `9/12` years

r = 20% p.a

For compounding quarterly, we have to use below formula,

Amount (A) = `"P" xx (1 + "r"/100)^(4"n")`

Since quarterly we have to divide ‘r’ by 4

r = `20/4` = 5%

A = `1600(1 + 5/100)^(9/12 xx 4)`

= `16000(105/100)^(9/12 xx 4)`

= `16000(105/100)^(9/3)`

= `16000 xx (21/20)^3`

= `16000 xx 21/20 xx 21/20 xx 21/20`

= 18522

∴ Interest A – P = 18522 – 16000 = 2522

What is the compound interest on Rs 16000 at 20% per annum for 9 months compounded quarterly 3 points Rs 2255 Rs 2500 Rs 2000 Rs 2522?

The compound interest on Rs. 16000 for 9 months at 20% p.a, compounded quarterly is Rs. 2522.

What is the compound interest on ₹ 20000 for 9 months at the rate of 4% per annum when interest is compounded quarterly?

Amount after 9 months =20000×(1+5100)3=20000×2120×2120×2120=23152.5Total interest =23152.5−20000=3152.5.

What is the compound interest on a sum of Rs 16000 at 30% per annum for an year if compounded half yearly?

∴ The compound interest is Rs. 5160.

What will be the compound interest of 16000?

Detailed Solution 3360. ∴ Compound interest = 16000 × (21/100) = 3360.

What is the compound interest on Rs 16000 at 20% per annum for 9 months compounded quarterly 3 points Rs 2255 Rs 2500 Rs 2000 Rs 2522?

How do you calculate 9 month CI?

How do you find CI compounded quarterly?

What will be the compound interest of 16000?