Question

(b) XYZ bank pays 12% and compound quarterly. If Rs. 1,000 is deposited initially, how much shall it grow at the end of 5 year​

Answer 1

$\textbf{Given:}$

$\textsf{XYZ bank pays 12 percent and compound quarterly.}$

$\textbf{To find:}$

$\textsf{If Rs.1,000 is deposited initially, how much shall it grow at the end of 5 year</p><p>}$

$\textbf{Solution:}$

$\underline{\textsf{Compound interest formula(quarterly):}}$

$\boxed{\mathsf{Compound\;interest=P\left(1+\dfrac{\frac{r}{4}}{100}\right)^{4n}-P}}$

$\mathsf{Here,\;P=Rs.\;1000,\;r=12\%,\;n=5\;years}$

$\mathsf{Compound\;interest=1000\left(1+\dfrac{\frac{12}{4}}{100}\right)^{20}-1000}$

$\mathsf{Compound\;interest=1000\left(1+\dfrac{3}{100}\right)^{20}-1000}$

$\mathsf{Compound\;interest=1000\left(\dfrac{103}{100}\right)^{20}-1000}$

$\mathsf{Compound\;interest=1000(1.03)^{20}-1000}$

$\mathsf{Compound\;interest=1000(1.80611)-1000}$

$\mathsf{Compound\;interest=1806.11-1000}$

$\implies\boxed{\mathsf{Compound\;interest=Rs.\;806.11}}$

$\textbf{Find more:}$

The compound interest of Rs .12,000 for 4 years at the rate 8%p.a.is more than the simple interest on same amount for 4 years at the  

rate 8% p.a. by Rs_______.  

a) 485.87  

b) 458.75  

c) 487.54  

d) 478.45​

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