Question

Rs. $1700$ is deposited in a bank paying $2.5\%$ compound interest quarterly. What is the balance after $3$ years?

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. $1700,r=2.5\%,n=4$ and $t=3$ years
$A=1700{(1+\frac{0.025}{4})}^{4.3}$
$A=1700\times {1.00625}^{1}2$
$A=1700\times 1.077633$
$A=$Rs. $1831.98$