Question

31250 for 1 years at 16%

Answer 1

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