Fine the compound interest and amount on rupees 100000 for 1years at thr rate of 16 percent per annum if interest is compounded quarterly.
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8160 is the answer I hope
vijaykumar3004:
No but how
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Answer:
Amount for 1 year= 100 000(1+0.16/4)^4=116985.86 (2 decimal places)
Not sure what you mean by finding compound interest as it's already stated (16% per annum)
Effective annual rate= (1+0.16/4)^4-1=0.17 (2d.p.), which means each year approximately 0.17 of previous amount is added into it.
Eg. After 1st year of compounding, we expect 0.17*100 000+100 000= 117 000, which is very close to the answer given by the compound interest formula.
Hope that helps :)
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