Question

Ramlat deposits $30000$ rupees in a financial establishment which pay interest at $9\%$ annual rate, compounded every four months. How much would she get back after one year?

Answer 1

Principal ,$P=Rs.30000$

Rate of Compound interest, $r=9$% annually

Time, $t=1$ years

Interest is compounded every four months.

So, Number of times interest is compounded in one year, $n=\frac{12}{4}=3$

Amount, $A=P{(1+\frac{r}{n})}^{nt}$

$A=30000{(1+\frac{9}{3\times 100})}^{3\times 1}$

$A=30000{\left(\frac{103}{100}\right)}^3$

$A=30000\times \frac{103}{100}\times \frac{103}{100}\times \frac{103}{100}$

$A\approx Rs.32781$