Question

Find the compound interest on
rs.1000 for 10 years at 4% annum if the interest is calculated quaterly.​

Answer 1

Answer:

Hope it helps...!!

Step-by-step explanation:

We have A = P( 1+ r/100) ^n

P = Rs 1000 … .. r = 4 % p.a = 1% quarterly

n = 10 yrs. = 10 × 4 = 40 qtrs.

Putting values we have

A = 1000( 1+ 1/100 ) ^40 = 1000( 101/100 ) ^40

= 1000(1.01 ) ^40 = Rs 1488.864 say Rs 1489

Therefore C.I = A - P = 1489 - 1000 = Rs 489 Ans