Question

The principal is 60496 . The rate of interest is 5.2 per annum . Find the compound interest for 23 months compounded quarterly .?​

Answer 1

Solution!!

The concept of compound interest has to be used here. The principal, rate of interest and time is given in the question. We are asked to find the compound interest.

Principal = Rs 60496

Rate of interest = 5.2%

Time = 23 months

We have to convert the months into years.

1 month = 1/12 year

23 months = 23/12 years

Time = 23/12 years

Amount = P(1 + R/400)⁴ⁿ

Amount = 60496(1 + 5.2/400)^7.67

Amount = 60496(1 + 13/1000)^7.67

Amount = 60496(1 + 0.013)^7.67

Amount = 60496(1.013)^7.67

Amount = 60496 × 1.104

Amount ≈ Rs 66793.22

CI = Amount - Principal

CI ≈ Rs 66793.22 - Rs 60496

CI ≈ Rs 6297.22

Abbreviations used:-

P → Principal

R → Rate of interest

n → Time

CI → Compound interest