Question 15A sum is taken for two years at 16 per annum

Question 15A sum is taken for two years at 16 per annum
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Question 15

A sum is taken for two years at 16% per annum. If interest is compounded after every three months, the number of times for which interest is charged in 2 yrs is
(a) 8
(b) 4
(c) 6
(d) 9

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Right Answer is:

SOLUTION

Since, rate of interest is calculated after every three months. Similarly, the time period for amount in a year will 4 times.
If amount is taken for 2 yr, means 4 × 2 = 8 times charged in 2 yr.
 

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