Question

What will be the ci on rs.24000 compounded quarterly for 9 months at 20%rate of interest?

Answer 1

Given,

principal=24000

Time=9 months,=9/12*4=3 quaters

Rate= 20% /4=5%

now,

A= P(1+R/100)^n

A= 24000(1+5/100)^3

A= 24000*21/20*21/20*21/3

A=3*9261

A=27783

Now,

C.I=Amount- Principal

C.I=27783-24000

C.I = 25383