Question

John deposited Rs. $50000$ in a bank for $1$ year and paying an annual interest rate of $14\%$, compounded quarterly. What is the maturity amount?

• A. Rs $54548$
• B. Rs $48884$
• C. Rs $84448$
• D. Rs $44888$

Answer 1

The correct option is C Rs $84448$

Given, principal Amount $\left(P\right)$ $=$ Rs. $50000$
Rate of Interest Amount $\left(r\right)$ $=14\%=0.14$
Number of Period $\left(t\right)$ $=1$ year
Compounded Interest $\left(n\right)$ $=4$ (quarterly)
Maturity value $=$ $P\times {(1+\frac{r}{n})}^{nt}$
$=$ $50000\times {(1+\frac{0.14}{1})}^4$
$=$ Rs. $84448$