Question

Find the compound interest on 1000 for 6 months at 20% annum compounded quarterly

Answer 1

this is your answer of the question.

Answer 2

we know that if a principal compounded quarterly

principal(p)=1000

rate p.a=20%

year(n)=6 month or 1/2 year

$p {(1 + \frac{ \frac{r}{4} }{100}) }^{4n} \\ 1000 {(1 + \frac{ \frac{20}{4} }{100}) }^{4 \times \frac{1}{2} } \\ 1000 {(1 + \frac{20}{400} )}^{2} \\ 1000 {(1 + \frac{1}{20} )}^{2} \\ 1000 \times \frac{21}{20} \times \frac{21}{20} \\ 10 \times \frac{441}{4 } \\ \frac{4410}{4} \\ amount = 1102.5 \\ interest = amount - principal \\ 1102.5 - 1000 \\ 102.5$