Question

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

Answer 1

Answer:

p(1+r/100)^t

answer us 100*101 =10100

Answer 2

Question:-

Calculate compound interest on Rs.1000 over a period of 1 year at 10% per annum if interest is compounded quarterly.

Required Answer:-

Given:-

• Principle amount = Rs.1000
• Time = 1 year
• Rate of interest = 10%

To Find:-

• Compound interest.

Solution:-

First, we have to calculate the amount.

We know that:-

$\\ \underline{\boxed{\rm{A = P(1 + \dfrac{r}{n}) {}^{nt}}}}$

Where,

• A is amount
• P is principle amount
• r is rate of interst
• t is time

We were given,

• The interest is compound quarterly.

Therefore, n = 1 / 0.25 = 4

Substituting the values:-

$\\ \sf{\bold{A = 1000 \times (1 + \dfrac{10}{4 \times 100} ) {}^{4 \times 1}}}$

$\\ \sf{\implies{A = 1000(1 + 0.025 ){}^{4}}}$

$\\ \sf{\implies{A = 1000 \times {1.025}^{4}}}$

$\\ \sf{\implies{A =\bold{ 1103.4}}}$

Therefore amount is Rs.1103.4

Now, let's find the compound interest.

We know that:-

Compound Interest = Amount - Principle amount

=> Compound Interest = Rs.(1103.4 - 1000)

∴ Compound Interest = Rs.103.4

Hence, compound Interest is Rs.103.4