Question

Principle = $20000 , rate = $20% per annum compounded quarterly , time = 1 year

Answer 1

• Principle = $ 20000
• Rate = 20%
• Time = 1 year.

Amount = P[1+r/400]⁴ⁿ

             = $ 20000[ 1+20/400]⁴

             = $ 20000[21/20]⁴

             = $ 20000 x 194481/160000

            = $ 24310.125

Amount = $ 24310.125

CI = A-P = 24310.125 - 20000 = $4310.125

Thank u.

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