Calculate the compound interest on 24,000
for 9 months at 20% per annum, compounded
quarterly.
Answers
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Step-by-step explanation:
Solution:-
P = Rs. 24000
Time or n = 6 months = 2 periods of 3 months each or n= 2.
Rate = 20 paisa per one rupee per annum
= 20 paisa per 100 paisa
R = 20 % per annum
There are 4 quarters in a year so, R = 20/4 = 5 % for 3 months
A = P(1 + R/100)ⁿ
A = 24000(1 + 5/100)²
A = 24000 × 105/100 × 105/100
A = 12 × 105 × 21
A = 26460 Rs.
Compound Interest = A - P
Compound Interest = 26460 - 24000
Compound Interest = 2460 Rs.
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