Tick (✓) the correct answer:
The compound interest on Rs 40000 at 6% per annum for 6 months, compounded quarterly, is
(a) Rs 1209
(b) Rs 1902
(c) Rs 1200
(d) Rs 1306
(a) Rs 1209
Time $=6$ months $=2$ quater years
Rate compounded quarter yearly $=\frac{6}{4} \%=\frac{3}{2} \%$
Now, $A=P \times\left(1+\frac{R}{100}\right)^{n}$
$=$ Rs. $40000 \times\left(1+\frac{3}{100 \times 2}\right)^{2}$
$=$ Rs. $40000 \times\left(\frac{203}{200}\right)^{2}$
$=$ Rs. $40000 \times\left(\frac{203}{200}\right) \times\left(\frac{203}{200}\right)$
$=$ Rs. $(203 \times 203)$
$=$ Rs. 4120
$\therefore$ Compound interest $=$ amount $-$ principal $=$ Rs. $41209-$ Rs. $40000=$ Rs. 1209
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