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### Question

What is the amount receivable on Rs. 20000 after 6 months, invested at a rate of 24% compounded quarterly?

**A**

Rs. 22472.

**B**

Rs. 22572.

**C**

Rs. 22372.

**D**

Rs. 22672.

**Soln.**

**Ans: a**

In this case r = $24/4$% and n = 2 because compounding is quarterly. So A = 20000 × $(1 + 6/100)^2$, which equals 2 × 106 × 106, i.e., Rs. 22472.