Question

What is the compound interest on rupees 1000 for 10 years at 4% per annum if the interest is calculated quarterly?​

Answer 1

Answer:

Compound interest would be Rs. 488.86.

Step-by-step explanation:

Since we have given that

Principal = Rs. 1000

Number of years = 10

Rate of interest = 4%

So, it becomes,

$\begin{gathered}A=P(1+\dfrac{r}{400})^{4n}\\\\A=1000(1+\dfrac{4}{400})^{4\times 10}\\\\A=1000(1+0.01)^{40}\\\\A=Rs.\ 1488.86\end{gathered}$

A=P(1+400 )

4n

A=1000(1+ 4004 )

4×10

A=1000(1+0.01)

40

A=Rs. 1488.86

So, Compound interest = Amount - Principal

= 1488.86-1000

=Rs. 488.86

Hence, Compound interest would be Rs. 488.86.

# learn more:

Find the compound interest on rs.1000 for 10 years at 4% per annum if the interest is calculated quarterly