Question

what will be the maturity amount of rs. 10000 after 12 months if quarterly interest is paid @ 10%?​

Answer 1

Answer:

The maturity amount will be Rs 11,038.13

Explanation:

Given :

Principal (P) = Rs 10,000

Rate of interest (r) = 10 %

Period (n) = 12 months

Frequency = Compound quarterly

To find :

The maturity amount (A) of Rs 10,000

Solution :

$\bigstar \: {\boxed{\sf{A= P\left( 1 + \frac{\frac{R}{4}}{100} \right)^{4n}}}}$

⇒ $\sf{A= P\left(\dfrac{\frac{10}{4}}{100}\right)^{4}}$

⇒ A = 10,000 [1 + (0.025)] ⁴

⇒ A = 10,000 (1.025)⁴

⇒ A = 10,000 × 1.103813

⇒ A = 11,038.13

Therefore,

The maturity amount will be Rs 11,038.13

Total interest = 1038.13