Question

An account earning $4.4\%$ interest compounded quarterly for $5$ years would have a balance of how much if the principal was Rs. $1500$?

Answer 1

We know the formula,
$A=P{(1+\frac{r}{n})}^{n.t}$
Where,
$A=$ total amount
$P=$ principal or amount of money deposited,
$r=$ annual interest rate
$n=$ number of times compounded per year
$t=$ time in years
Given:
$P=$ Rs. $1500,r=4.4\%,n=4$ and $t=5$ years
$A=1500{(1+\frac{0.044}{4})}^{4.5}$
$A=1500\times {1.011}^{2}0$
$A=1500\times 1.244581$
$A=$ Rs. $1866.87$