Question

when the EMI are calculated using present value of the annuity using compound Intrest, the method is called​

Answer 1

Answer:

INTREST COMPOUNDED QUARTERLY

Answer 2

Given,

When the EMI is calculated using the present value of the annuity using compound Intrest, the method is called​

Solution,

Know that in the calculation of quaterly interest the rate of interest is divided by four and the time is multiplied by four.

$\[ \Rightarrow C.I = P{\left( {1 + \frac{{\frac{R}{4}}}{{100}}} \right)^{4t}}\]$

Hence, the method is called interest compounded quarterly.