a) Rs 7500
b) Rs 7600
c) Rs 7700
d) Rs 7800
correct answer is: Rs 7800
Explanation
Here,
Principal = Rs 6500
rate = 8 %
Time = 2.5 years
Now, find the quarterly interest rate:
Quarterly Interest Rate =\large\frac{Annual\ Interest\ Rate\ }{4}
\therefore Quarterly Interest Rate (r) =\large\frac{8\%}4 =2\%
Now, calculate the total number of quarters in 2.5 years:
Total number of quarters (t) =\left(Time\times4\right)
\therefore Total number of quarters =\left(2.5\times4\right) or 10 quarters
We know,
Amount = (Principal + S.I.)
Or, Amount = (Principal +\large\frac{p\ \times\ t\ \times\ r}{100})
\rightarrow Amount =\left(6500+\large\frac{6500\times10\times2}{100}\right)
\rightarrow Amount =\left(6500+1300\right)
\therefore Amount = Rs 7800
Ans: An amount of Rs 6500 with simple quarterly interest of 8%, will yield Rs 7800 in 2 and a half years.
Other ways to ask this same question are:
1. Calculate the total amount obtained from an investment of Rs 6500 at a simple quarterly interest rate of 8% over a period of 2 and a half years.
2. Find out the final value of an investment of Rs 6500 with a simple quarterly interest rate of 8% for 2 and a half years.
3. Determine the total sum accumulated from Rs 6500 invested at a simple quarterly interest rate of 8% for 2 and a half years.
4. Calculate the final value of an investment of Rs 6500 with a simple quarterly interest rate of 8% over a period of 2 and a half years.
5. What is the total amount obtained after investing Rs 6500 at a simple quarterly interest rate of 8% for 2 and a half years?