6. Calculate compound interest on 1000 over a period of 1 year at 10% per annum, if
interest is compounded quarterly?
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0
Answer:
can I answer it in annually
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2
Answer:
P = 1000,
R = 10% per annum = 10/4 % per quarter (1 year is 4 quarters) = 2.5
T = 1 year = 4 quarters
CI = P(1 + R/100)^T − P
CI = 1000(1 + 2.5/100)^4 - 100
CI = 1103.8 − 1000 = 103.8
∴ Interest over 4 quarters will be Rs.103.8.
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