Question

Find the compound interest on rupees 7,500 at the rate of 12% per annum for 9 months if the interest is calculated quarterly.

Answer 1

principal = 7500

rate of interest = 12% per annum

time period = 9 months

time when interest is calculated = quarterly (3 months )

number of conversion periods ( no. of time periods in which interest is calculated in the whole time period ) = 3

compound interest = principal ( 1 + rate of interest /100) ^ no. of conversion periods

= 7500 ( 1 + 12/100 ) ^ 3

= 7500(112/100)^3

= 7500 * 1404928/1000000

= 10536.96

hope this answer helps you