Question

Find the compound interest on ₹4000 for 1 year at 10 % per annum, the interest being compounded quarterly.​

Answer 1

Answer:

Compound interest is 415.25 Rs.

Step-by-step explanation:

In the given question,

Principal Amount, P = 4000

Time for interest , t = 1 year

Rate of interest, r = 10% per annum compounded quarterly

Now, we know that in case of compounded quarterly.

The rate of interest is reduced to 1/4 times of initial and time increases by 4 times.

So,

New rate, R = 10/4 = 2.5 %

New Time, T = 1 x 4 = 4 years

So,

Compound Interest is given by,

CI=P(1+\frac{r}{100})^{t}-PCI=P(1+

100

r

)

t

−P

So,

$$\begin{lgathered}CI=4000(1+\frac{2.5}{100})^{4}-4000\\CI=4000(1.025)^{4}-4000\\CI=4415.25-4000\\CI=415.25 \ Rs.\end{lgathered}$$

Therefore, the Compound interest is 415.25 Rs.