Question

Calculate the compound interest(I) on : Rs. $20,000$ in $\frac{1}{4}$ years at $10\%$ per annum.

Answer 1

$Amount=P{(1+\frac{R}{100})}^N$

C.A for two years =$20000{(1+\frac{10}{100})}^2=20000\left(\frac{110}{100}\right)\left(\frac{110}{100}\right)=24200Rs$

C.I for $0.25$ year =$\frac{24200\times 10\times 0.25}{100}=605$

Total C.A=$24200+605=24805$

C.I =$24805-20000=4805$