Question

Rohit deposited rupees 10000 in a bank for 6 months if the bank pays compound interest rupees at 12 %per annum reckoned quarterly. find the amount received by him on maturity.

Answer 1

SOLUTION 1 : Without formula

Principal Amount = Rs 10,000

Find the interest rate for a quarter:

1 year = 12%

1 quarter = 12 ÷ 4 = 3%

Find the interest for the first quarter:

Interest = 3% x Rs 10,000

Interest = 0.03 x 10000 = Rs 300

Find the amount in the bank after first quarter:

Amount = Principal + Interest

Amount = 10,000 + 300 = Rs 10,300

Find the interest for the second quarter:

interest = 3% of Rs 10,300

Interest = 0.03 x 10,300 = Rs 309

Find the amount in the bank after second quarter:

Amount = Principal + Interest

Amount = 10,300 + 309 = Rs 10,609

Answer: Rohit will have Rs 10,609 on maturity

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SOLUTION 2 : With formula

$\text {Formula :} A = P(1 + \frac{r}{n} )^{nt}$

$A = 10000(1 + \frac{0.12}{4} )^{4(0.5)}$

$A = 10000(1 + 0.03 )^{2}$

$A = 10000(1.03 )^{2}$

$A = \text{Rs } 10609$

Answer: Rohit will have Rs 10,609 on maturity

Answer 2

Principal= 10000 rupees

compound interest per annum=12%

compound interest per quarter =4%

time =6 months =0.5 year

Amount = P( 1+R/100) ^T
= ₹ 10,000 (1+3/100)^2
= ₹10,000 (103/100)^2
= ₹ 10,000 × 103/100 × 103/100
= ₹10,609