Question

    What is the compound interest (in Rs.) on a sum of Rs.

    8192 for 1(1/4) years at 15% per annum, if interest is compounded 5-monthly?
    A 1740 Correct Answer Incorrect Answer
    B 1735 Correct Answer Incorrect Answer
    C 1634 Correct Answer Incorrect Answer
    D 1640 Correct Answer Incorrect Answer

    Solution

    Time period = 3 (15 months/5) Rate as per 5-monthly basis = 5/12 × 15 = 25/4%  Compound Interest = 8192 × (1 + 25/4 ÷ 100)3 - Principal  ⇒ 8192 × (1 + 1/16)3 - 8192 = 8192 [ 17/16 × 17/16 × 17/16 - 1]  ⇒ 8192 [(4913 - 4096) ÷ 4096]  ⇒ 8192 × 817/4096 ⇒ 1634 

    Practice Next