Question

Find the compound interest on Rs 64000 for 1 year at the rate of 10% per annum compounded quarterly.

Answer 1

$$\begin{gathered} \mathrm{To}\mathrm{calculate}\mathrm{the}\mathrm{interest}\mathrm{compounded}\mathrm{quarterly},\mathrm{we}\mathrm{have}: \\ \mathrm{A}=\mathrm{P}{\left(1+\frac{\mathrm{R}}{400}\right)}^{4\mathrm{n}} \\ =64,000{\left(1+\frac{10}{400}\right)}^{4\times 1} \\ =64,000{\left(1.025\right)}^4 \\ =70,644.03 \\ \mathrm{Thus},\mathrm{the}\mathrm{required}\mathrm{amount}\mathrm{is}\mathrm{Rs}70,644.03. \\ \mathrm{Now}, \\ \mathrm{CI}=\mathrm{A}-\mathrm{P} \\ =\mathrm{Rs}70,644.025-\mathrm{Rs}64,000 \\ =\mathrm{Rs}6,644.03 \end{gathered}$$