Question

Find the compound interest on Rs. 8000 for 9 months at 20% per annum compounded

quarterly.
​

Answer 1

We know formula for compound interest compounded quarterly

Amount=P(1+

n

r

)

nt

CompoundInterest=Amount−Principal

Given,

principal=Rs8000

Time=9months=9/12months

Rate=20%

=8000(1+

4

.2

)

12

9

×4

=8000(1+0.05)

3

=8000(1.05)

3

=8000×1.15762=9261

Amount is Rs9261

Compound interest will be=(9261-8000)=Rs1261