Question

Calculate the compound interest on rs 40,000 for 9 months at the rate of 20 % per annum, when the interest is compounded quarterly.

Answer 1

Answer:

Given data: principle amount, P 40000

Rs, rate of interest, r = 20 % per annum and time, n = 9 months.

Solution: We have to find the compound interest.

according to question,

→ Compound interest is quarterly so time = 9/3 = 3 quarters.

=>

Rate of interest, r = 20% per annum =

20/4 = 5% per quarter.

Now, we use formula,

⇒ A=P*(1+r/100)^n

→ A = 40000 *(1 + 5/100)³

A = 40000*(1 + 0.05)³

⇒ A=40000* (1.05)³

A = 40000* 1.157625

→ A = Rs 46305

Now;

compound interest - A - P

compound interest = 4630540000

compound interest = Rs 6305

Answer: Therefore compound interest is

Rs 6305.