Question

find the compound interest on rupees 32000 for 9 months at 10% per annum if the interest is being compounded quarterly

Answer 1

compound interest formula:
$a = p(1 + \frac{r}{n} {)}^{nt}$
p= 32,000
r= 10% per annum or 0.10 per annum
n= 3 (we need to find out the amount for 9 months which is 3 quarters compounding)
t= 9 months or 0.75 years

a = 32,000 (1 + 0.10/4)^3×0.75
⇒a = 32,000 (1 + 0.025)^3×0.75
⇒a = 32,000 × 1.025^3.075
⇒a = 32,000 × 1.025^2.25
⇒a = 33,828.18