Question

Find the amount on Rs. 1500 for 12 months at 12% per annum, compounded quarterly.
1. Rs. 1688.26
2. Rs. 1566.78
3. Rs. 1455.67
4. Rs. 1788.67

Answer 1

Correct Answer - Option 1 : Rs. 1688.26

Given

Principal = Rs. 1500, Time = 12 months and Rate = 12% per annum

Formula used

A = P(1 + r/100)^t

Where A, P, r and t represents amount, principal, rate and time respectively

Concept

When compound quarterly is given, then time is multiply by four and rate is divided by four.

Calculation

Rate = 12%/4 = 3% per annum

Time = 12 months or 1 year

⇒ 1 × 4

⇒ 4

A = P(1 + r/100)t 

⇒ A = 1500(1 + 3/100)⁴

⇒ A = 1500(103/100)⁴

⇒ A = Rs. 1688.26

∴ The amount is Rs. 1688.26.