A person borrowed ₹ 10,000 at 12% rate of interest per annum compounded quarterly for a period of 9 months. What is the interest paid by him to settle his account after 9 months?

  1. A. 927.27
  2. B. 947.47
  3. C. 967.67
  4. D. 987.87

Correct Answer: A. 927.27

Explanation

Rate quarterly = 12\% / 4 = 3\%. Time periods = 9 months = 3 quarters. Amount = 10000(1 + 0.03)^3 = 10000(1.092727) = 10927.27. Compound Interest = 10927.27 - 10000 = 927.27.

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