In what duration of time will ₹3300 become ₹3399 at 12% per annum interest compounded quarterly ?

  1. A. 3 months
  2. B. 6 months
  3. C. 9 months
  4. D. 1 year

Correct Answer: A. 3 months

Explanation

The quarterly rate is 12% / 4 = 3%. The amount after 1 quarter is 3300 + 3% of 3300 = 3300 + 99 = 3399. Thus, it takes exactly 1 quarter, which is 3 months.

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