Question

Find the interest on R5000, for 1 year at the rate of 8% compounded quarterly.


Please do answer with all working steps

Answer 1

Answer:

1802.44

Step-by-step explanation:

${\underline{{\text{Given}}}}$

Principal = Rs 5000

Time = 1 yr

Rate of interest = 8%

Mode of Interest = Compound Quarterly

${\underline{{\text{To Find:}}}}$

Compound interest (C.I)

${\underline{{\text{Solution:}}}}$

As We know,

$A = P{(1+\frac{r}{100})}^{4n}$

Where,

A = Amount

P = Principal

r = rate of interest

n = time in yr

So,

$5000{(1+\frac{8}{100})}^{4 \times 1} \\ \\ = 5000{( \frac{108}{100})}^{4} \\ \\ = 5000 \times \frac{108}{100} \times \frac{108}{100} \times \frac{108}{100} \times \frac{108}{100} \\ \\ = \cancel{5000} \times \frac{108}{\cancel{100}} \times \frac{108}{ \cancel{100}} \times \frac{11664}{10000} \\ \\ = 108 \times \frac{108}{2} \times 1.1664 \\ \\ = \frac{13604.8896}{2} \\ \\ = 6802.4448 \\ \\ = 6802.44(approx.)$

Therefore,

C.I = Amount - Principal

= Rs(6802.44 - 5000)

= Rs 1802.44

Hence, the required Compound Interest is Rs 1802.44