The C.I on 4,000 for 6 months at 12% p.a payable quarterly is
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Answered by
42
Answer:
Compound interest = 243.60
Step-by-step explanation:
Compound interest formula is given by :
Compound interest = P[(1 + i)ⁿ - 1]
P = the deposited amount
i = interest rate
n = period of investment normally in years.
Since compounding is done quarterly:
1) The interest is divided by four.
2) The period is multiplied by 4
From the question we have :
Time = 6/12 × 4 = 2
Interest = 12/4 = 3%
P = 4000
We do the substitution in the formula below :
= 4000[(1.03)² - 1]
= 4000[1.0609 - 1]
= 4000 × 0.0609 = 243.60
The compound interest
Answered by
8
243.60 is your required answer
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