1.

Find the compound interest on Rs. 10,000 for one year at the rate of 20% per annum, if the interest is compounded quarterly. *

Answer»

Step-by-step EXPLANATION:

Principle=Rs. 10000

Rate QUARTERLY= 20/4= 5%

Time conversion PERIODS= 4

By FORMULA,

Amount=P[1+(R/100)]^T

=10000[1+(5/100)]^4

=10000[1+(1/20)]^4

=10000[21/20]^4

=10000*(194,481/160,000)

=Rs. 12155.06

Therefore,

CI=12155.06-10000=Rs. 2155.06



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