What is the compound interest on Rs. 40,000 for 6 months at 12% per annum, compounded quarterly?
Correct answer C. Rs. 2,436
Explanation
Quarterly rate = 3%, periods = 2. A = 40000 × (1.03)² = 42,436, so CI = Rs. 2,436. For quarterly compounding, divide the annual rate by 4 and multiply the years by 4.
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