find the compound interest on rs.1000 for 10 years at 4% per annum if the interest is calculated quarterly
Answers
Answer:
Compound interest = Rs.488.86
Step-by-step explanation:
P = initial amount in Rs. = 1000
R = rate of interest per cent per year = 4
T = time period in years = 10
m = compounding interval = 4 [because interest is compounding quarterly, there are four compounding intervals in a year. Four quarters make a year.]
A = final amount at the end of T years
Using compound interest formula, we know:
A = P(1 + R/(m*100))^(mT)
= 1000(1 + 4/(4*100))^(4*10)
= 1000(1 + 4/400)^40
= 1000(1 + 0.01)^40
= 1000(1.01)^40
= 1000*1.488864
= 1488.864
Compound interest is:
CI = A - P
= 1488.864 - 1000
= 488.864
= 488.86 (Rounded off to nearest paise)
Compound interest earned = Rs.488.86
Answer:
489
Step-by-step explanation:
amount = p ( 1 + r /100 ) ^ n
hope it helps !
