Question

Find compound interest on 20000 ruppees for 9 months at 14 percent per annum,when compound interest is compounded quaterly.​

Answer 1

Answer:

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