find the compound interest in ₹1000 for 6months at 8%p.a.compounded quarterly
Answers
Answered by
3
Answer:
Step-by-step explanation:
To find compound interest when interest is compounded quarterly, we use the following formula :
A = P ( 1 + R/4 )4n and C.I. = A – P
Where, P = Principal
R = Rate of interest p.a (per annum i.e annually)
n = number of years.
Examples :
1) Find the compound interest on $320,000 for one year at the rate of 20% p.a., if the interest rate is compounded quarterly.
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
Similar questions
Biology,
6 months ago
Social Sciences,
6 months ago
Social Sciences,
6 months ago
English,
1 year ago
History,
1 year ago
Physics,
1 year ago