Calculate the compound interest on a sum of ₹12,000 at 16% p.a. for 3 months, compounded quarterly.

Correct option is D

Given:

Principal (P) = ₹12,000

Rate of interest (R) = 16% per annum

Time (T) = 3 months

Compounded quarterly

Formula Used:

​$$A = P \left(1 + \frac{R}{100} \right)^n$$​​

where:

A = Amount after interest

P = Principal

R = Rate per quarter

n = Number of quarters

Compound Interest (CI):

CI=A−P

Solution:

Since the interest is compounded quarterly, we convert:

Time in quarters: $$\frac{3}{3} ​=1$$  quarter​

Rate per quarter:$$\frac{16}{4} = 4\%$$​​

A =$$12000 \times \left(1 + \frac{4}{100} \right)^1$$​​

A= $$12000 \times \left(1.04\right)=12480$$​​

CI=12480−12000 =480

Option (d) is right.