Question

under a scheme of investment, the rate of interest is 4% and the interest is compounded three-monthly. what will be the amount if a man invests Rs 2000 for 1 year under this scheme??

Answer 1

Dear student
$$\begin{gathered} Amount=P{\left(1+\frac{r}{100}\right)}^t=2000{\left(1+\frac{4/4}{100}\right)}^4=2000\left(1.04\right)=Rs2081.20 \\ \left[Rateofinterestcompundedthreemonthly=\frac{4}{4}\%becausein1yeartherewill4times3months\right] \end{gathered}$$