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Answers
Explanation:
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Explanation:
Given :-
Principle = Rs. 256
Compound Interest = 100% per annum
Compound Interest is calculated quarterly
To find :-
Find the compound interest ?
Solution :-
Given that :-
Principle = Rs. 256
Compound Interest = 100% per annum
Compound Interest is calculated quarterly
So ,Total number of times the interest calculated per annum = 4
n = 4
Rate of interest per quarterly = 100%/4 = 25%
Given time = 1 year
We know that
Compound Amount = P[1+(R/100)]^n
On substituting these values in the above formula
=> A = 256[1+(25/100)]⁴
=> A = 256 [ 1+(1/4)]⁴
=> A = 256 [ (4+1)/4]⁴
=> A = 256 [ (5/4)⁴
=> A = 256(5×5×5×5)/(4×4×4×4)
=> A = 256×625/256
=> A = 625
Amount after 1 year = Rs. 625
We know that
Amount = Principle+ Interest
=> Compound Interest = Amount - Principle
=> CI = 625-256
=> CI = Rs. 369
Answer:-
The Compound Interest for the given problem is Rs. 369
Used formulae:-
- Compound Amount = P[1+(R/100)]^n
- Amount = Principle+ Interest
- P = Principle
- T = Time
- R = Rate of Interest
- A = amount
- n = number of times the interest calculated