Question

*What should be the interest rate and duration for principal Rs. 500 for 1 year at 12% compounded quarterly ?*

1️⃣ R = 12% N = 1 year
2️⃣ R = 6% N = 2
3️⃣ R = 3% N = 4
4️⃣ R = 6% N= 4 year​

Answer 1

1 is the correct answér

mark brainliest

Answer 2

3.  R = 3% N = 4 year is the correct answer.  

• To calculate the compound interest, where rate is compounded quarterly, following changes are made in the general formula.
• The rate of interest is divided by four and the time period is multiplied by four.
• Thus, the collective formula representing rate of interest and duration when rate is compounded quarterly is - A = P*(1+R/400)4*n. In the formula, a stands for amount, p stands for principal amount, r is rate of interest and n is the time period.