Question

Calculate the compound interest on Rs 4000 for 6 months if the interest is payable quarterly at the rate of 8% per annum.

Answer 1

$\blue{\bold{\underline{\underline{Answer:}}}}$

$\green{\tt{\therefore{Compound\:Interest=616.6\:rupees}}}$

$\orange{\bold{\underline{\underline{Step-by-step\:explanation:}}}}$

$\green{\underline \bold{Given :}} \\ \tt:{\implies Principal(p) = 4000 \: rupees} \\ \\ \tt: \implies Time(t) = 6 \: months \\ \\ \tt: \implies Rate\% = 8\% \\ \\ \red{\underline \bold{To \: Find:}} \\ \tt: \implies Compound \: Interest \: quarterly(C.I) = ?$

• According to given question :

$\bold{As \: we \: know \: that} \\ \tt: \implies A = p(1 + \frac{ \frac{r}{4} }{100} )^{4t} \\ \\ \tt: \implies A = 4000(1 + \frac{ \frac{8}{4} }{100} )^{(4 \times \frac{1}{2}) } \\ \\ \tt: \implies A = 4000(1 + \frac{8}{4 \times 100} )^{2} \\ \\ \tt: \implies A = 4000(1 + 0.02)^{2} \\ \\ \tt: \implies A = 4000 \times (1.02)^{2} \\ \\ \green{\tt: \implies A = 4161.6 \: rupees} \\ \\ \bold{For \: compound \: interest} \\ \tt: \implies C.I = A - p \\ \\ \tt: \implies C.I= 4616.6 - 4000 \\ \\ \green{\tt: \implies C.I = 616.6 \: rupees}$