Question

Find the CI on Rs. $16000$ for one year at the rate of $20\%$ p.a., if the interest is compounded quarterly.

Answer 1

$\begin{array}{c}D=Rs16000\\ Ifinterestarequaterly\\ \Rightarrow ThenRate=\frac{20}{2}=2years\\ \Rightarrow C.I=16000{\left[1+\frac{10}{100}\right]}^2\\ \Rightarrow C.I=16000{\left[\frac{11}{10}\right]}^2\\ C.I=16000\times \frac{11}{10}\times \frac{11}{10}=16\times 12\times 10=19360rupees\end{array}$