Question

Find the amount and C.I for the following P=390625, r =16% p.a compounded quarterly and t=1 year​

Answer 1

||✪✪ QUESTION ✪✪||

Find the amount and C.I for the following P=390625, r =16% p.a compounded quarterly and t=1 year ?

|| ★★ FORMULA USED ★★ ||

→ when rate is given Quarterly, we do :-

⓵ Time will be 4 times.

❷ Rate is divided by 4.

→ Amount in this case is = P [ 1 + (R/100) ]^ T

→ Compound interest = Amount - Principal..

|| ✰✰ ANSWER ✰✰ ||

As rate is compounded Quarterly given,

So,

➳ Rate = 16/4 = 4%

➳ Time = 1 * 4 = 4 years.

➳ P = 390625

Putting all values now, we get,

➺ A = 390625 [ 1 + (4/100) ]⁴

➺ A = 390625 * (26/25)⁴

➺ A = ₹ 456976

So,

☞ CI = 456976 - 390625 = ₹ 66351 .

Hence, Compound interest receive in this case is ₹ 66351 .