Question

What is compond interest on rs 60000 for 4 months at th rate 5% per annum

Answer 1

Answer:

Rs 1000

Rs  984

Step-by-step explanation:

Amount (principle) = Rs 60000

Rate of interest = 5 % per annum

time period = 4 months = 4/12 Years = 1/3 Years

Data of compounding period is missing

if we we say interest is compounded annually then

Interest for less than 1 year would be same either compounded or simple interest.

Simple interest for 4 months = {60000 * 5 * (1/3)}/100

= 20000 * 5 / 100

= 20000/20

= 1000

Rs 1000

But Mathematically if we calculate compound interest

compound interest = $P(1 + \frac{r}{100n})^{nt)} - P$

$60000(1 + \frac{5}{100})^{1/3)} - 60000$

$60000(1.05})^{1/3)} - 60000$

= 984

Answer 2

principal (P) is equal to rupees 60000

time (T) is equal to 4 months=(4/12) year=1/3 year

rate of interest (R) is equal to 5% per annum

So, Compound interest (CI)=Amount-Principal

CI=P(1+R/100)-60000

CI=60000(1+5/100)^1/3 -60000

CI=60000(1+1/20)^1/3-60000

CI=60000(21/20)^1/3-60000

CI=60000(cube root 1050/10-1)

CI=983.781

So, compound interest (CI)=₹983.78=₹984