Question

if 6000 is deposited for 2 years at 4% per annum compounded quarterly then find the time period and date to compute compound interest?

Answer 1

principal= p = 6000

interest per annum = i = 4%

compounded quarterly so 4%/4 = (4/100)/4 = 4/400 = 0.01

time = n = 2 years

no.of quarters in 2 years = 2 *4 = 8

compound interest = P{(1+i)^n -1}

= 6000{(1+0.01)^8 -1}

=6000{(1.01)^8 -1}

=6000{(1.08285670562 - 1)}

= 6000 {0.06285670562}

= 497