Question

Find the compound interest on $Rs.40,000$ for $1$ year at $10\%$ per annum interest being payable quarterly

Answer 1

$P=40,000T=1yearR=10\%$

When payable quarterly,

$C.I=P{(1+\frac{R}{4\times 100})}^{4\times T}-P=40000{(1+\frac{10}{400})}^4-40000=40000{\left(\frac{41}{40}\right)}^4-40000=4152.5\therefore C.I=Rs.4152.5$