Question

The compound interest on Rs 64,000 for 1 year at the rate of 10% per annum compounded quarterly is

• A. Rs 6644.025
• B. Rs 7,600
• C. Rs 8,500
• D. none of these

Answer 1

The correct option is A Rs 6644.025

We know formula for compound interest compounded quarterly
$Amount=P{(1+\frac{r}{n})}^{nt}$
$CompoundInterest=Amount-Principal$
Given,
principal=Rs64000
Time=1year
Rate=10%
$=64000{(1+\frac{.1}{4})}^4$
$=64000{\left(1.025\right)}^4$
$=64000\times 1.10381$
$=70644.025$
Amount is Rs70644.025
Compound interest will be=(70644.025-64000)=Rs6644.025