Question

Dolly deposited 3 15000 in a cooperative society that give compound interest. She took out her money after 9
months. If the interest rate was 12% and calculated quarterly, what was the compound interest? Use formulae only.​

Answer 1

Answer:

Solution:

Here, P = $320,000, R = 20% p.a. and n = 1 year.

∴ Amount after 1 year = P ( 1 + R/4 ) 4n

= 320,000 x ( 1 + 0.20/4 ) 4 x 1

= 320,000 x ( 1 + 0.05) 4

= 320,000 x (1.05 ) 4

= 320,000 x 1.21550

= Rs. 388,962

∴ Compound interest = 388,962 – 320,000 = 68,962