Question

calculate compound interest on Rs 1000 over a period of 1 year at 10 % per annum ,if interest is compound quarterly?​

Answer 1

Answer:

Amount = 1076.89

Compound Interest = 76.89

Step-by-step explanation:

Principal ( P ) = 1000

Rate ( R ) = 10 %

Time ( n ) = 1 year

Compound Interest ( CI ) = Amount (A) - Principal (P)

Amount = ?

Amount = P ( 1  +  $\frac{R}{4 * 100 }$ $)^{4 (n)}$

              = 1000 ( 1 + $\frac{10}{400}$ $)^{4}$

              = 1000 ( 1 + $\frac{1}{40}$$)^{4}$

              = 1000 × $\frac{41}{40}$ × $\frac{41}{40}$ × $\frac{41}{40}$

              = 1076.89

CI = A - P

   = 1076.89 - 1000

   = 76.89