Question

find the compound interest on 24000 for six month if the interest is payable quarterly @ 20 paise per annum

Answer 1

Solution:-
P = Rs. 24000
Time or n = 6 months = 2 periods of 3 months each or n= 2.
Rate = 20 paisa per one rupee per annum
= 20 paisa per 100 paisa
R = 20 % per annum
There are 4 quarters in a year so, R = 20/4 = 5 % for 3 months
A = P(1 + R/100)ⁿ
A = 24000(1 + 5/100)²
A = 24000 × 105/100 × 105/100
A = 12 × 105 × 21
A = 26460 Rs.
Compound Interest = A - P
Compound Interest = 26460 - 24000
Compound Interest = 2460 Rs.
Answer.

Answer 2

P= $24,000

Time=6 months[compounded quaterly]

Rate=20paise a rupee per annum

=20•/•

Amount=p(1+r/100)2

=24,000(1+20/4*1/100)2

=24,000(1+1/20)2

=24,000(20+1/20)2

=24,000*21/20*21/20

=$26,420 (amount)

C. I= $(26,420-24,000)

=$2,420( C. I)