UPSC CDS 2 2022 Math Paper

CI=[P(1+

R

100

)T−P]
Where, P= Principal, R= Rate of interest and T= Time

According to the question
Principal = Rs. 10,000
Rate =4% per annum quarterly =(4∕4)%=1%
Time =4 year [1 year =4 quarters ]
CI=[P(1+

R

100

)T−P]
⇒ Rs. [10,000(1+

1

100

)4−10,000]
⇒ Rs. [10,000(1+0.01)4−10,000]
⇒ Rs. [10,000(1.01)4−10,000]
⇒ Rs. (10,000×1.0406−10,000)
⇒ Rs. (10,406−10,000)
⇒ Rs. 406
∴C> Rs. 400