Question

Mera lent out 20000 for nine months at20%per annum compounded quarterly to mrs Sharma. What amount will she get after the expiry of the period

Answer 1

See this answer and think

Answer 2

Given:

Principle amount=P=20000

Time,t=9 months

Rate of interest,r=20%

To find:

Value of amount

Solution:

Time,t=9 month==$\frac{9}{3}=3$quarter

r=20%=$\frac{20}{4}=5$%

We know that

Amount=$P(1+\frac{r}{100})^t$

Using the formula

$Amount=20000(1+\frac{5}{100})^3$

$Amount=20000(\frac{21}{20})^3$

Amount=$20000\times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}$

Amount=23152.5

Hence, she will get 23152.5 after the expiry of the period.