Question

find the compound interest on rs 8000 for 1 year at 8% per annum compounded quarterly . give answer in step by step answer is rs 1004

Answer 1

Principle(P) = Rs 8000
Rate of interest(r) = 8%p.a.
no. of years(n) = 1 year

using formula for Amount quarterly.
Amount = P ( 1 + r/100)^4n
Amount = 8000 ( 108/400)^4×1
Amount = 8000 × (108/400)^4
Amount = 10883.91168
Now find ,
compound interest = Amount - Principle
= 10883.91168 - 8000
= 2883.91168