The compound interest earned in 1 year on ₹4,80,000 at the rate of 20% per annum, compounded quarterly, is:

Correct option is A

Given:

Principal P = ₹4,80,000

Rate of Interest R = 20\% per annum

Compounded quarterly

quarterly rate = $$\frac{20}{4} = 5\%$$​​

Time = 1 year, n  = 4 quarters;

Required: Compound Interest for 1 year.

Formula Used:

A = $$P \left(1 + \frac{r}{100} \right)^n \quad \text{and} \quad CI = A - P$$​​

Where:

r = rate per quarter

n = number of quarters

Solution: 

Using the formula;

A = $$480000 \left(1 + \frac{5}{100} \right)^4$$​​

​$$= 480000 \times \left(\frac{105}{100}\right)^4$$​​

​$$= 480000 \times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}$$​​

= 583443

CI = 583443 - 480000 = ₹1,03,443