Question

Find the compound interest on Rs. 10,000 for one year at the rate of 20% per annum, if the interest is compounded quarterly. *

Answer 1

Step-by-step explanation:

Principle=Rs. 10000

Rate quarterly= 20/4= 5%

Time conversion periods= 4

By formula,

Amount=P[1+(R/100)]^T

=10000[1+(5/100)]^4

=10000[1+(1/20)]^4

=10000[21/20]^4

=10000*(194,481/160,000)

=Rs. 12155.06

Therefore,

CI=12155.06-10000=Rs. 2155.06