Find the compound interest on Rs. 12550 for 9 months at 12% per annum compounded quarterly.
1). Rs. 1164
2). Rs. 1125.18
3). Rs. 1198.72
4). Rs. 1164.32
We know that,
Compound Interest $(= P \times {\left( {1 + \frac{r}{n}} \right)^{nt}} - P)$
∴ Answer $(= 12550 \times {\left( {1 + \frac{{0.12}}{4}} \right)^{4 \times \frac{9}{{12}}}} - 12550 \approx 1164)$