Question

If rs 6000 is deoosited for two years at 4% oer annum comoounded quaterly

Answer 1

 Amount = P[1+r/400]⁴ⁿ

             = 6000 x [ 1 + 4/400]⁴ ˣ ²

              = 6000 x [101/100 ]⁸

              = 6000 x 101/100 x 101/100 x ...........x101/100  [ 8 times]

              =  64971402337684806000/10000000000000000

             = 6497  approx.

CI = 6497 - 6000 = 497