Question

arun took a loan of rupees 390625 from kuber finance . if the company charges interst at 16% per annum ,compounded annually ,compounded quarterly , what amount will discharge his debt after 1 year
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Answer 1

Answer:

Principal = Rs. 390625

As the interest is compounded quarterly @ 16 % per annum, the rate of interest will be 1/4th of 16 %

R = 16/4 = 4 %

Time is 1 year and there are 4 quarters in

a years.

So,

T = 4

A = P(1 + R/100)

A = 390625(1 + 4/100)4

A = 390625 x 104/100 x 104/100 x 104/100 x 104/100

A = 390625 x 1.04 x 1.04 x 1.04 x 1.04

A = 456976 =

Arun will have to pay Rs. 456976 after 1 year to discharge his debt...

hope it helps uh...

Step-by-step explanation:

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