RRB NTPC · Question 94
Mr. Vagish invested money in FD. How much amount will he get at maturity, if Rs. 4500 are invested for 6 months at a rate of 20% compound interest annually and the interest is compounded quarterly? A. 4961.5 rupees B. 4961.25 rupees C. 4961.35 rupees D. 4961 rupees
Show answer & explanation
Answer: (A) B
Explanation
20% a year compounded quarterly is 5% a quarter; 6 months = 2 quarters. Amount = 4500 × (1.05)² = 4500 × 1.1025 = Rs 4,961.25.