What will be the compound interest nearest to Rs1 on a sum of Rs25 000 for 2 years at 12 p a if the ...........

Quantitative Aptitude (CGL) Compound Interest

What will be the compound interest (nearest to Rs1) on a sum of Rs25,000 for 2 years at 12% p.a., if the interest is compounded

8-monthly ?

This questions was previously asked in

SSC CGL 4 June 2019 Shift-3

Rs 6,394

Rs 6,439

Rs 6,493

Rs 6,349

- We need to find the compound interest on Rs 25,000 for 2 years at a 12% annual interest rate, compounded every 8 months.

- The formula for compound interest (CI) is CI = P(1 + r/n)^(nt) - P, where:

- P is the principal amount (Rs 25,000),

- r is the annual interest rate (0.12 for 12%),

- n is the number of compounding periods per year, and

- t is the time in years.

- When interest is compounded every 8 months, there are 3 compounding periods in 2 years.

- Using the formula, the effective interest rate per period is 0.12/1.5 = 0.08.

- Calculate CI = 25000(1 + 0.08)^3 - 25000.

After calculations, you will find the compound interest to be approximately Rs 6,493.

Option 3 is correct.

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