Question

Abu, Babu and Sabu deposited 10000 rupees each, under various schemes which give 10% interest. Abu gets interest compounded annually, Babu gets interest compounded every half-year and Sabu gets interest compound every quarter. Compute the total amount each would get after 2 years.

Answer 1

Money deposited by Abu, Babu and Sabu, P = Rs.10000

Rate of interest, r = 10%

Time, n = 2 years

For Abu:

We know that A =

∴ Amount received by Abu after 2 years

For Babu:

Simple interest is given by the formula

Interest for the first half of the first year = Rs

= Rs.500

Principal for the second half of the first year = Principal + Interest

= Rs.10000 + Rs.500

= Rs.10500

Interest for the second half of the first year = Rs

_{= Rs.525}

Principal for the first half of the second year = Rs.10500 + Rs.525

= Rs.11025

Interest for the first half of the second year = Rs

= Rs.551.25

Principal for the second half of the second year = Rs.11025 + Rs.551.25

= Rs.11576.25

Interest for the second half of the second year = Rs

_{= Rs.578.81}

∴ Amount received by Babu after two years = Rs.11576.25 + Rs.578.81

= Rs.12155.06

For Sabu:

Interest for the first quarter of the first year = Rs

= Rs.250

Principal for the second quarter of the first year = Principal + Interest

= Rs.10000 + Rs.250

= Rs.10250

Interest for the second quarter of the first year = Rs

= Rs.256.25

Principal for the third quarter of the first year = Rs.10250 + Rs.256.25

= Rs.10506.25

Interest for the third quarter of the first year = Rs

= Rs.262.66

Principal for the fourth quarter of the first year = Rs.10506.25 + Rs.262.66

= Rs.10768.91

Interest for the fourth quarter of the first year = Rs

= Rs.269.22

Principal for the first quarter of the second year = Rs.10768.91 + Rs.269.22

= Rs.11038.13

Interest for the first quarter of the second year = Rs

= Rs.275.95

Principal for the second quarter of the second year = Rs.11038.13 + Rs.275.95

= Rs.11314.08

Interest for the second quarter of the second year = Rs

= Rs.282.85

Principal for the third quarter of the second year = Rs.11314.08 + Rs.282.85

= Rs.11596.93

Interest for the third quarter of the second year = Rs

= Rs.289.92

Principal for the fourth quarter of the second year = Rs.11596.93 + Rs.289.92

= Rs.11886.85

Interest for the fourth quarter of the second year = Rs

= Rs.297.17

Amount received by Sabu after two years = Rs.11886.85 + Rs.297.17

= Rs.12184.02