The sum at the end of 4 years for Rs 100 at 10% p a C I payable quarterly is
A)100(1.1)3
B)100(1.025)4
C)100(1.025)16
D)100(1.1)4

Question

Quizplus · Accepted Answer

Since the interest is compounded quarterly, the interest rate per quarter is 10%/4 = 2.5% or 0.025 as a decimal. The number of quarters in 4 years is 4*4 = 16. Therefore, the formula for compound interest is Principal * (1 + rate)^number of periods, which in this case is 100 * (1.025)^16.

The Sum at the End of 4 Years for Rs