Question

if you deposit rs 4000 into an account paying 6% annual interest compounded quarterly how much money will be in the account after 2 years??

Answer 1

if interest is compounded quarterly....then formula=. A=P(1+r/400)^4n

Answer 2

Answer:

Rs 4505.96  money will be in the account after 2 years .

Step-by-step explanation:

Formula for compounded quarterly

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

Where P is the principle value, r is the rate in the decimal form and n is the time in years.

P = Rs 4000

6% is written in the decimal form .

$= \frac{6}{100}$

= 0.06

r = 0.06

n = 2 years

Put in the formula

$Amount = 4000(1 + \frac{0.06}{4})^{4\times 2}$

$Amount = 4000(1 + \frac{0.06}{4})^{8}$

$Amount = 4000(1 + 0.015)^{8}$

$Amount = 4000\times 1.12649$

Amount = Rs 4505.96

Therefore Rs 4505.96  money will be in the account after 2 years .