# The compound interest on a sum of Rs. 5000 at 8% per annum for 9 month

| The compound interest on a sum of Rs. 5000 at 8% per annum for 9 months when interest is compound quarterly is:

A. Rs. 300

B. Rs. 300.12

C. Rs. 306.04

D. Rs. 308

### Right Answer is: C

#### SOLUTION

Rate of interest =

per quarter

Time = 3 quarters

C.I.=P

= 5000

= 5000 [(1.02)^{3}-1)]

= 5000(1.061208-1)

= 5000 x 0.061208

= Rs. 306.04

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The compound interest on a sum of Rs. 5000 at 8% per annum for 9 month