Question

find the compound interest on rupees 160000 for 1 year at 20% per annum if the interest is compounded quarterly​

Answer 1

Answer:

116880

Step-by-step explanation:

A=p(1+r/100)∧n

 =160000(1+1/5)³

 =160000*6/5*6/5*6/5

 =1280*6*6*6

 =276880

if A=276880,

P=160000,

Interest= 276880-160000

            =116880

Answer 2

Answer:

34481 rupees

Step-by-step explanation:

As the interest is compounded quarterly, we will divide the rate by 4 and multiply the time(in years) by 4.

Then we will apply the formula for total amount i.e. A = P*[ 1+(R/100)]^n

Putting all the values we get:

A= 160,000[1+(5/100)]^4

A= 160,000*(105/100)*(105/100)*(105/100)*(105/100)

A= 194481 rupees

CI= 194481 - 160,000

CI= 34481 rupees