Question

# A person borrowed 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?

Answer

R= 12% per quarter

Time period = 9 months

$$A=P(1+r)^n$$

$$n = \frac{9}{3}=3$$

$$A=10000\left(1+\frac{12}{100}\right)^3$$

A = ₹ 10,927.27

Interest paid = 10,927.27 – 10,000= ₹ 927.27

Answer (a) → ₹ 927.27