Question

Find the compound interest on Rs 160000 for one year at the rate of 20% per annum, if the interest is compounded quarterly.

Answer 1

$$\begin{gathered} \mathrm{Given}: \\ \mathrm{P}=\mathrm{Rs}16,000 \\ \mathrm{R}=20\%\mathrm{p}.\mathrm{a}. \\ \mathrm{n}=1\mathrm{year} \\ \mathrm{We}\mathrm{know}\mathrm{that}: \\ \mathrm{A}=\mathrm{P}{\left(1+\frac{\mathrm{R}}{400}\right)}^{4\mathrm{n}} \\ =16,000{\left(1+\frac{20}{400}\right)}^4 \\ =16,000{\left(1.05\right)}^4 \\ =\mathrm{Rs}19,448.1 \\ \mathrm{Now}, \\ \mathrm{CI}=\mathrm{A}-\mathrm{P} \\ =\mathrm{Rs}19,448.1-\mathrm{Rs}16,000 \\ =\mathrm{Rs}3,448.1 \end{gathered}$$