Question

find the compound interest of rs. 2400 at the rate of 8%per annum for two years if the interest is calculted. 1.quarterly 2.monthly

Answer 1

244*8*2/100=384

answer 384

Answer 2

(1.) Therefore Compound interest of Rs.2,400/- compounded quarterly is Rs.2812/-.

(2.) Therefore Compound interest of Rs.2,400/- compounded monthly is Rs.2579/-.

Given:

The principal amount = P = Rs. 2400

Rate of interest = R = 8%

Number of years = 2 years

To Find:

(1.) The compound interest for which compounded quarterly

(2.) The compound interest for which compounded monthly.

Solution:

The given question can be answered as shown below.

(1.) Compounded quarterly:

The number of intervals = n = 4 ( We will get 4 quarters in a year )

Time period = n × (Number of years ) = T = 4 × 2 = 8

⇒ Compound Interest = CI = P ( 1 + R/n100 $)^n^T$

⇒ Compound Interest = CI = 2400 ( 1 + 8/(4×100) )⁸ = 2400 (1.02)⁸ = 2812

Therefore Compound interest of Rs.2,400/- compounded quarterly is Rs.2812/-.

(2.) Compounded monthly:

The number of intervals = n = 12 ( We will get 12 months in a year )

Time period = n × (Number of years ) = T = 12 × 2 = 24

⇒ Compound Interest = CI = P ( 1 + R/n100 $)^n^T$

⇒ Compound Interest = CI = 2400 ( 1 + 8/(24×100) )²⁴ = 2400 (1+1/300)²⁴ = 2400 ( 1 + 0.003 )²⁴ = 2400 (1.003)²⁴ = 2579

Therefore Compound interest of Rs.2,400/- compounded monthly is Rs.2579/-.

(1.) Therefore Compound interest of Rs.2,400/- compounded quarterly is Rs.2812/-.

(2.) Therefore Compound interest of Rs.2,400/- compounded monthly is Rs.2579/-.

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