Discussion of Question with ID = 093 under Compound-Interest

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Question

What is the amount receivable on Rs. 3000000 after 9 months, invested at a rate of 24% compounded quarterly?

A

Rs. 3573048.

B

Rs. 3573148.

C

Rs. 3572948.

D

Rs. 3573248.

Soln.
Ans: a

In this case r = $24/4$% and n = 3 because compounding is quarterly, and in 9 months there are three quarters. So A = 3000000 × $(1 + 6/100)^3$, which equals 3 × 106 × 106 × 106, i.e., Rs. 3573048.

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