Question

if
Calculate compound interest on 1000 over a period of 1 year at 10% per annum
interest is compounded quarterly?​

Answer 1

Here,P=1000

r=10%

n=4

t=1

nt=4

one year =4 quarters

A=1000(1+(10/4)/100)^4

=1000(1+5/2*1)100)^4

=1000(1+1/40)^4

=1000(41/40)^4

=1103.81

Compund Interest =A-P

=110.3-1000

=103.81 rupees

Thus compund interest =103.81 rupees