Question

Find the compound interest on Rs 10000 for 1 year at 20% per annum interest being payable quarterly

Answer 1

Here, $P=Rs10000,R=20$
Amount after 1 year $A=P{(1+\frac{R}{400})}^{4\times 1}$
$=10000\times {(1+\frac{20}{400})}^{4\times 1}$
$=10000\times {(1+\frac{1}{20})}^4$
$=10000\times {\left(\frac{21}{20}\right)}^4$
$=10000\times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}=12155.0625$
$\therefore \text{Compound interest}=A-P=12155.0625-10000=2155.0625$