Question

What is the compound interest on rs 4000 for 9 months at 6% per annum,the interest being reckoned quarterly?

Answer 1

Answer:

Principal = Rs. 4000,

Time = 9 months = 3 quarters.

The rate is 6% per annum but the interest has to be paid 4 times a year, i.e.,

Rate = 6 % per annum = 6/4 % per quarter.

A = P ( 1 + R )^n

A = 4000[1+(6/4)%]³

A = 4000(1+6/400)³

A = 4000[1 + 0.015]³

A = 4000[1.015]³

A = 4000[1.045678375]

A = 4182.72

Answer 2

Answer:

P= 4000

R=6/4=3/2

T=9/12 =3

Step-by-step explanation: