A moneylender lends Rs. 2000 for 6 months at 20% per annum

Home » Aptitude » Compound Interest » Question

A moneylender lends Rs. 2000 for 6 months at 20% per annum whereas the interest is compounded quarterly. After the given period he will get the amount of ?

1. Rs. 2205
2. Rs. 2200
3. Rs. 2160
4. Rs. 2040

Correct Option: A

For the quarterly interest,
Time = (6/12) year x 4 = 2 quarterly
Rate = 20/4 = 5%
(∴ On quarterly interest time is multiplied by 4 and rate is divided by 4)
Hence,required amount = Principal (1 + Rate/100)^Time
= 2000(1 +5/10)²
= 2000(21/20)²
= Rs. 2205