Ravi took a loan of 16,000 for one year at 20% interest p.a. compounded quarterly. The amount that Ravi has to pay after one year is:

Correct option is A

Given:

Ravi took a loan of 16,000 .

rate =20% interest p.a.

interest compounded =compounded quarterly.

Formula Used:

compound interest =$$A = P \left(1 + \frac{r}{n}\right)^{nt}$$

Solution;

interest for one quarter =  interest per annum\4

                                    =20\4

                                       =5%

 total amount compound interest for one year =  16,000$$\times\frac{105}{100}\times\frac{105}{100}\times\frac{105}{100}\times\frac{105}{100}$$ 

                                                                           =16000$$\times\frac{121550625}{100000000}$$​​

                                                                          =19448.10