Question

Find the compound interest on rupees 1800 for 1 year at the rate of 4% p.a compounded quarterly.​

Answer 1

Compound interest on rupees 1800 for 1 year at the rate of 4% p.a compounded quarterly

A = $1,873.09

A = P + I where

P (principal) = $1,800.00

I (interest) = $73.09

Calculation Steps:

First, convert R as a percent to r as a decimal

r = R/100

r = 4/100

r = 0.04 rate per year,

Then solve the equation for A

A = P(1 + r/n)^nt

A = 1,800.00(1 + 0.04/4)^(4)(1)

A = 1,800.00(1 + 0.01)^(4)

A = $1,873.09

Answer 2

$a = p(1 + \frac{r}{n} ) ^{nt}$

$a = 1800(1 + \frac{0.04}{4} )^{4 \times 1}$

$a = 1800.00 + (1 + 0.01) ^{4}$

$a = 1873.09$