Kavya deposited 8,500 in is bank which pays her 12% interest per annum compound quarterly. what is the amount which she receives after 9 months?
Answers
Step-by-step explanation:
Given, Kavya deposited RS 8500 in a bank which pays her 12%interest per annum compounded quarterly
We have to find what is the amount which she receives after 9 months.
Now, we know that,
When interest is compounded Quarterly:
\text { Amount }=P\left[1+\frac{\left(\frac{R}{4}\right)}{100}\right]^{4 n} Amount =P[1+
100
(
4
R
)
]
4n
Where, p is principal amount, r is rate and n is time period.
Now, principal amount = 8500, rate = 12%, n = 9months = 3/4 years.
Substitute these values in above formula
\text { Amount }=8500 \times\left[1+\frac{\frac{12}{4}}{100}\right]^{4 \times \frac{3}{4}} Amount =8500×[1+
100
4
12
]
4×
4
3
=8500 \times\left[1+\frac{3}{100}\right]^{3}=8500×[1+
100
3
]
3
=8500 \times 1.03^{3}=8500 \times 1.092727=8500×1.03
3
=8500×1.092727
Amount = 9288.1795.
Hence, she receives Rs.9288.18 approximately after 9 months
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