Question

find the compound interest on rs 10000 in one year at 12% per annum compounded quarterly​

Answer 1

Answer:

Given:

Present value =₹ 10000

Interest rate =12% per annum

Time =1

2

1

years =3/2 years

To find the amount we have the formula,

Amount (A)=P(1+(r/100))

n

where P is present value, r is rate of interest, n is time in years

Now substituting the values in above formula we get,

∴A=10000(1+12/100)

1

[1+(12/2)/100]

⇒A=10000(1+12/100)

1

(1+6/100)

⇒A=10000(112/100)(106/100)

⇒A=1×112×106

⇒A=₹ 11872

∴ Compound interest =A–P

=11872–10000=₹ 1872