CUET UG 2025 — General Test Arithmetic

Given:
Principal = Rs. 80,000
Interest Rate = 40% per annum
Time Period = 1 year
Compounding = Quarterly (4 times a year)

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For quarterly compounding, the year is divided into 4 equal quarters, so interest is calculated and added 4 times in 1 year.

Rate per quarter $= \dfrac{40\%}{4} = 10\%$=440%​=10%

Number of compounding periods $= 1 \times 4 = 4$=1×4=4

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Using the compound interest formula $A = P(1 + \dfrac{r}{100})^n$A=P(1+100r​)n where:

$$P = 80,000$$P=80,000

$r = 10\%$r=10% (rate per quarter)

$n = 4$n=4 (number of quarters)

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$$A = 80,000 \times (1 + \dfrac{10}{100})^4$$A=80,000×(1+10010​)4

$$A = 80,000 \times (1.1)^4$$A=80,000×(1.1)4

Calculating $(1.1)^4$(1.1)4:

$$(1.1)^2 = 1.21$$(1.1)2=1.21

$$(1.1)^4 = 1.21 \times 1.21 = 1.4641$$(1.1)4=1.21×1.21=1.4641

Therefore:

$$A = 80,000 \times 1.4641$$A=80,000×1.4641

$$A = 1,17,128$$A=1,17,128

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Compound Interest $=$= Final Amount $-$− Principal

$$CI = 1,17,128 - 80,000$$CI=1,17,128−80,000

$$CI = 37,128$$CI=37,128

Therefore, the compound interest earned is Rs. 37,128.