Question

Principal $20000,rate 20% per annum compounded quarterly ,Time 1 years..Find the compound interest using the formulae​

Answer 1

Given that:

• Principal = $ 20000
• Rate = 20% per annum compounded quarterly
• Time = 1 year

To Find:

• The compound interest.

Formula used:

• A = P(1 + R/n)ⁿᵀ
• CI = A - P

Where,

• A = Amount
• P = Principal
• R = Rate
• n = Number of times interest is compounded per unit time
• T = Time

Finding the amount:

↠ A = 20000(1 + 20%/4)⁴*¹

↠ A = 20000(1 + 5%)⁴

↠ A = 20000(1 + 0.05)⁴

↠ A = 20000(1.05)⁴

↠ A = 20000(1.21550625)

↠ A = 24310.125

Finding the compound interest:

↠ CI = 24310.125 - 20000

↠ CI = 4310.125

Hence,

• The compound interest is $ 4310.125.

Answer 2

$\large \huge \: Solution :-$

Given that:

• Principal = ₹20000
• Rate = 20% per annum compounded quarterly
• Time = 1 year

To Find:

• The compound interest

Finding the amount:

A = 20000(1 + 20%/4)⁴*¹

A = 20000(1 + 5%)⁴

A = 20000(1 + 0.05)⁴

A = 20000(1.05)⁴

A = 20000(1.21550625)

A = 24310.125

Hence,

• The compound interest is ₹ 4310.125.