31250 for 1 years at 16%
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The information given in the question is as follows:
1. Principal ( denoted by P ) = ₹ 31250
2. Rate of Interest ( denoted by R ) = 16 % p.a.
3. Time ( denoted by T ) = 1 year
)
Since the interest is calculated quarterly we will be using the following formula:
Amount ( denoted by A ) = P ( 1 + R / 400 ) ^ 4T
Let us substitute the values now,
A = 31250 ( 1 + 16 / 400 ) ^ ( 4 * 1 )
A = 31250 ( 1 + 4 / 100 ) ^ 4
A = 31250 ( 1 + 1 / 25 ) ^ 4
A = 31250 ( 26 / 25 ) ^ 4
A = 31250 * 456976 / 390625
On simplifying further we get,
A = ₹ 36558.08
Therefore,
Amount = ₹ 36558.08
Compound Interest = Amount - Principal
CI = A - P
CI = ₹ 36558.08 - ₹ 31250
CI = ₹ 5308.08
1. Principal ( denoted by P ) = ₹ 31250
2. Rate of Interest ( denoted by R ) = 16 % p.a.
3. Time ( denoted by T ) = 1 year
)
Since the interest is calculated quarterly we will be using the following formula:
Amount ( denoted by A ) = P ( 1 + R / 400 ) ^ 4T
Let us substitute the values now,
A = 31250 ( 1 + 16 / 400 ) ^ ( 4 * 1 )
A = 31250 ( 1 + 4 / 100 ) ^ 4
A = 31250 ( 1 + 1 / 25 ) ^ 4
A = 31250 ( 26 / 25 ) ^ 4
A = 31250 * 456976 / 390625
On simplifying further we get,
A = ₹ 36558.08
Therefore,
Amount = ₹ 36558.08
Compound Interest = Amount - Principal
CI = A - P
CI = ₹ 36558.08 - ₹ 31250
CI = ₹ 5308.08
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