Question

Calculate the compound interest on rs 1000000 in 9 months at the rate of 8% per annum interest payable quarterly

Answer 1

Answer:

It is given that

Principal (P) = 100000

Rate of interest = 4% p.a. or 1% quarterly

Period (n) = 9 months or 3 quarters

We know that

P(1+r/100)

n

Substituting the values

= 100000(1+1/100)

3

By further calculation

=100000×101/100×101/100×101/100

= 103030.10

Here

CI = A - P

Substituting the values

= 103030.10−100000

= 3030.10

Answer 2

• As per the data given in the question, we have to find the value of the expression.

            Given data:- $8\%$ per annum

            To find:- Calculate compound interest.

            Solution:-

• A percentage is a fraction of an amount expressed as a particular number of hundredths of that amount.

• It is denoted by  $\%.$ $1\%.$ means $\frac{1}{100} .$.

• We are using the unitary method to calculate the percentage of numbers.

• Fractions can be converted into percentages and vice-versa.

• Percentages are reversible. For example, $30\%\ of 40$ is the same as $40\%of \ 30.$

        It is given that  

       $Principal (P) = 100000$

   Rate of interest $= 4\% p.a. or 1\%\ quarterly$

   Period (n) = $9 \ months \ or \ 3 \ quarters$  

   We know that

    $\mathrm{P}(1+\mathrm{r} / 100)^{\mathrm{n}}$

  substituting the values

     $=100000(1+1 / 100)^{3}$

  by further calculation

    $\begin{array}{l}=100000 \times 101 / 100 \times 101 / 100 \times 101 / 100 \\=103030.10\end{array}$

     Here

   $\mathrm{CI}=\mathrm{A}-\mathrm{P}$

  Substituting the values

   $\begin{array}{l}=103030.10-100000 \\=3030.10.\end{array}$

    Hence we will get the value $3030.10.$