Question

calculate the compound interest on rupees 1000 over a period of 1 year at 10 percent per annum if interest is compounded quarterly​

Answer 1

Answer:

Here,

P = 1000

n = 1 x 4 = 4

i = 10%/4 = 0.1/4 = 0.025

C.I. = P{(1+i)^n - 1}

= 1000{(1+0.025)^4 - 1}

= 1000{(1.025)^4 - 1}

= 1000{(1.10381) - 1}

= 1000(0.10381)

= 103.81

Therefore compound interest is of ₹103.81