Question

Find the compound interest on Rs 8000 for 9 months at 20% per annum compounded quarterly.

Answer 1

$$\begin{gathered} \mathrm{P}=\mathrm{Rs}8,000 \\ \mathrm{T}=9\mathrm{months}=3\mathrm{quarters} \\ \mathrm{R}=20\%\mathrm{per}\mathrm{annum}=5\%\mathrm{per}\mathrm{quarter} \\ \mathrm{A}=8,000{\left(1+\frac{5}{100}\right)}^3 \\ =8,000{\left(1.05\right)}^3 \\ =9,261 \\ \mathrm{The}\mathrm{required}\mathrm{amount}\mathrm{is}\mathrm{Rs}9,261. \\ \mathrm{Now}, \\ \mathrm{CI}=\mathrm{A}-\mathrm{P} \\ =\mathrm{Rs}9,261-\mathrm{Rs}8,000 \\ =\mathrm{Rs}1,261 \end{gathered}$$