How much will ₹ 10,000 amount to in one year's time at 4% rate of interest per annum if the interest is compounded once in every three months? (take approximate value)

  1. A. ₹10,406
  2. B. ₹10,416
  3. C. ₹10,426
  4. D. ₹10,436

Correct Answer: A. ₹10,406

Explanation

Compounded quarterly means rate r = 4\% / 4 = 1\% per quarter. Time is 4 quarters. Amount = 10000(1 + 0.01)^4 = 10000(1.040604) \approx 10406.

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