Question

calculate the amount and compound interest on first part rupees 15000 for 2 years at 10% per annum compounded annually second part Rupees 156250 by one whole 1by2 years at 8% per annum compounded half yearly third part rupees 100000 for 9 months at 4% per annum compounded quarterly

Answer 1

Compound interest accumulation factor :

P(1 + i)ⁿ

P = deposited amount

i = interest rate

n = Time in years

1.) first scenario

15000 × (1.10)² = 18150

Compound interest = 18150 - 15000 = 3150

2.) Scenario 2

i = 8/2 = 4%

n = 2 × 2 = 4

156250 × (1.04)⁴ = 182790.40

= 182790 (nearest whole)

Interest = 182790 - 156250 = 26540

Rs 26540