A person borrowed Rs 10 000 at 12 rate of interest per annum compounded quarterly for a period ...........

Quantitative Aptitude (CDS) Compound Interest

A person borrowed Rs.10,000 at 12% rate of interest per annum compounded quarterly for a period of 9 months. What is the interest paid by him to settle his account after 9 months ?

This questions was previously asked in

2023 CDS -2 MATH

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Rs.927.27

Rs.947.47

Rs.967.67

Rs.987.87

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Explanation:

- To find the interest, use the compound interest formula: A = P(1 + r/n)^(nt), where A is the amount, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the time in years.

- Here, P = Rs.10,000, r = 12% or 0.12, n = 4 (since it's compounded quarterly), and t = 9/12 or 0.75 years.

- Calculate A: A = 10,000(1 + 0.12/4)^(4*0.75).

- A = 10,000(1 + 0.03)^3 = 10,000 * 1.092727 = Rs.10,927.27.

- Interest = A - P = Rs.10,927.27 - Rs.10,000 = Rs.927.27.

Option:1, Rs.927.27