Question

Find the compound interest on $Rs.10000$ for $12$ month at $10\%$ per annum. If the interest is compounded.
Quarterly

Answer 1

$P=$Rs. $10000$

$T=12$ months$=1$year

$R=10\%$ p.a

Compounded quarterly

$\therefore n=4$

$A=P{(1+\frac{R}{n})}^{nT}$

$=10000{[1+\frac{10}{4}]}^{4\times 1}$

$=10000\times {\left(\frac{14}{4}\right)}^4$

$=10000\times {\left(\frac{7}{2}\right)}^4$

$=\frac{10000\times 7\times 7\times 7\times 7}{2\times 2\times 2\times 2}$

$A=$Rs. $1500625$

Compound Interest$=Amount-P$

$=$Rs. $(1500625-10000)$

$=$Rs. $1490625$.