Question

Find the amount and compound interest on Rs 10000, borrowed for a year at 12% p.a. compounded quarterly.

Answer 1

CI=ptr/100
p=10000
t=1year
r=12%
10000×1×12/100
=1200
as it compounded quaterly=1200/4
=300
therefore compound intrest is 300

Answer 2

Dear Student,

◆ Answer -

Payment due = Rs 11255

Compound interest = 1255 Rs

● Explanation -

Given that sum of money is compounded quarterly. So it will be compounded 4 times at rate of 12/4 = 3 % per quarter = 3/100 = 0.03 percent per quarter.

Payment due = P (1+r)^t

Payment due = 10000 (1 + 0.03)^4

Payment due = 10000 × 1.03^4

Payment due = 10000 × 1.1255

Payment due = Rs 11255

Compound interest is given by -

Compound interest = payment due - sum invested

Compound interest = 11255 - 10000

Compound interest = Rs 1255

Hence, compound interest is 1255 Rs.

Thanks dear. Hope this helps you...