Rohit invests Rs.25,000 in an investment at a compound interest of 12% per annum. However, he has to withdraw his investments after 16 months. How much interest did he earn?
option
a) 5121
b) 5187.50
c) 2441.33
d) 4221

• let principle amount=25000, he withdrw his investments after 16 months so this interests compounded quarterly.
  from the compound interest formula, A=P(1+r/n)^nt.
  so,r=.12,n=4,t=16/12=1.33y put those in the formula
  
  A=25000*(1+.03)^4*1.33=29221.28 then interes will be=(29221.28-25000)=4221.28...
  
  this is my answer..
• 11 years agoHelpfull: Yes(1) No(1)
• 4120
  Interest after 12 months=25000*12/100=3000
  Interest rate for 4 months @12% per annum=12/3=4%
  So Interest of 4 months=(25000*4/100)+(3000*4/100)=1120
  Total interest=3000+1120= 4120
• 11 years agoHelpfull: Yes(0) No(0)