Question

Compute C.I. on 9200 for 6 months at 6% per annum when the interest is compounded quarterly.
my answer in answersheet is 560.28​

Answer 1

Step-by-step explanation:

Present value =₹ 40000

Interest rate =6% per annum

Time =6 months

To find the amount we have the formula,

Amount (A)=P(1+(r/100))n

where P is present value, r is rate of interest, n is time in years

Now substituting the values in above formula we get,

∴A=40000(1+(6/4)/100)2

⇒A=40000(1+3/200)2

⇒A=40000(203/200)2

⇒A=40000(203/200)2

⇒A=203×203

⇒A=₹ 41209

∴ Compound interest =A–P

=41209–40000=₹ 1209