Math, asked by javid45, 1 year ago

calculate compound interest on 1000 over a period of 1year at 10% per annum if the interest is compound quarterly

Answers

Answered by Samanwita
1
Principal Amount =P= 1000

No.of periods= n = 1 year @ compounded quarterly = 1×4 = 4

Rate of interest Per Annum= i = 10%/4 = 2.5 %

Compound interest = P((1+i)^n-1)

= 1000((1+2.5/100)^4-1)

=1000((1 +0.025)^4-1)

=1000(1.025)^4- 1)

=1000(1.1038 -1)

=1000(0.1038)

=999
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