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