Question

Find the compound interest on Rs. $32000$ for $9$ month at $10\%$ p.a., if the interest is being compounded quarterly.

Answer 1

Given, $P=32000$ Rs

$R=10$ % p.a

$n=9$ months = $\frac{3}{4}$ year

If interest compounded quarterly,

Amount = $P{(1+\frac{R}{4\times 100})}^{4n}$

$=32000{(1+\frac{10}{400})}^{4\times \frac{3}{4}}$

$=32000(1+0.025{)}^3$

$=34460.5Rs$

Compound interest = Amount - Principal

$=34460.5-32000$

$=Rs.2460.50$