Question

Calculate the compound interest on 1000 over a peripd of 1year at 10% per annum , if interest is compounded quarterly

Answer 1

P = 1000
n = 1 yr
R = 10%
☆ A = P (1+ R/4×100)^4n
= 1000 (1+ 10/4×100)^4×1
= 1000 (440/400)^4
= 1000 (1.4641)
= 1464.1
compound interest = A _ P
= 1464.1 _ 1000
= Rs. 464

c.i = Rs.464