The C.I on Rs.40000 @10%p.a for 1 year when the interest is payable quarterly is?
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principal = 40000
rate of interest = 10% per annum
time period = 1 year
interest is compounded quarterly. so
number of conversion periods = 4
compound interest = principal(1+ rate of interest/100 )^number of conversion periods
=> 40000(1+10/100)^4
=>40000(11/10)^4
=>40000*14641/10000
=>4*14641
=58564
therefore the compound interest is 58564 rupees!!!!!!!
the compound interest payable quarterly = 58564/4 = 14641
rate of interest = 10% per annum
time period = 1 year
interest is compounded quarterly. so
number of conversion periods = 4
compound interest = principal(1+ rate of interest/100 )^number of conversion periods
=> 40000(1+10/100)^4
=>40000(11/10)^4
=>40000*14641/10000
=>4*14641
=58564
therefore the compound interest is 58564 rupees!!!!!!!
the compound interest payable quarterly = 58564/4 = 14641
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compound interest answer
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