Question

If you deposited $\$200$ in an one year investment that paid interest at the rate of $12\%$ compounded quarterly, what amount would you have after $1$ year?

Answer 1

We know the formula,
$A=P{(1+\frac{r}{n})}^{n.t}$
Where,
$A=$ total amount
$P=$ principal or amount of money deposited,
$r=$ annual interest rate
$n=$ number of times compounded per year
$t=$ time in years
Given:
$P=$ Rs. $200,r=12\%,n=4$ and $t=1$ years
$A=200{(1+\frac{0.12}{4})}^{4.1}$
$A=200\times {1.03}^4$
$A=200\times 1.125509$
$A=$ Rs. $225.10$