Question

Find the compound interest on rs 2000 for 1 and 1/4 years at 10 percent per annum. the interest being payable quarterly.

Answer 1

four quarters in a year
so time = 5/4 × 4 =5 yrs
and rate = 10/4 % =5/2 % =5/200 =1/40
ci =p { (1 + r/100)^n -1}
= p{ ( 1 + 1/40 )^5 -1 )
= 2000{ ( 1 +1/40)^5 -1 }