Question

9. Find the compound interest on Rs 5000 at 20% p.a for 1 year 9 months compounded annually (a) Rs 900 (b) Rs 1900 (c) Rs 1800 (d) Rs 2300 (e) Rs 2400
how to approach it
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Answer 1

Step-by-step explanation:

Given, P=32000 Rs

R=10 % p.a

n=9 months = 43 year

If interest compounded quarterly,

Amount = P(1+4×100R)4n

=32000(1+40010)4×43

=32000(1+0.025)3

=34460.5Rs

Compound interest = Amount - Principal 

=34460.5−32000

=Rs.2460.50