Question

Calculate compound interest on 1000 over a period of 1 year at 10% per annum, if​

Answer 1

Answer:

Given: P=1000,R=10% per annum =

4

10

% per quarter (1 year is 4 quarters) =2.5

T=1 year=4 quarters

CI=P(1+

100

R

)

T

−P

=1000(1+

100

2.5

)

4

−1000

CI=1103.8−1000=103.8

∴ interest over 4 quarters will be Rs.103.8