29. Calculate compound interest on1000 over a period of 1 year at 10%p

1.	29. Calculate compound interest on1000 over a period of 1 year at 10%per annum, if interest is compoundedquarterly. [Ex. 5.3-15, Page No.1191
Answer» For Compound InterestA = P(1 + R/100)^n Given, A = P + CI, CI =?, P = 1000, R = 10, n = 4 (interest compounded quarterly) Then, A = 1000(1 + 10/100)^4A = 1000(1 + 1/10)^4A = 1000(1.1)^4A = 1000(1.464) A = 1464 Compound Interest = A - P = 1464 - 1000= Rs 464

29. Calculate compound interest on1000 over a period of 1 year at 10%per annum, if interest is compoundedquarterly. [Ex. 5.3-15, Page No.1191

Answer»

For Compound InterestA = P(1 + R/100)^n

Given, A = P + CI, CI =?, P = 1000, R = 10, n = 4 (interest compounded quarterly)

Then, A = 1000(1 + 10/100)^4A = 1000(1 + 1/10)^4A = 1000(1.1)^4A = 1000(1.464) A = 1464

Compound Interest = A - P = 1464 - 1000= Rs 464