Compound Interest Practice Test 1

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Question : 18 of 40

Marks: +1, -0

Find the amount received by Radhika if she lends Rs 1,680 for one year at 20% compounded quarterly.

Rs 2,420
Rs 2,240
Rs 2,042
Rs 2,402
Rs 2,204

Solution:

Amount

=(1+r/{4×100})^{4t}

=1680(1+20/{4×100})^{4}

=1680(21/20)^4

≈ 2,042

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