Question

What will a deposit of Rs. $5,500$ at $8\%$ compounded quarterly interest be worth, if left in the bank for $10$ 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. $5500,r=8\%,n=4$ and $t=10$ years
$A=5500{(1+\frac{0.08}{4})}^{4.10}$
$A=5500\times {1.02}^{4}0$
$A=5500\times 2.20804$
$A=$ Rs. $12144.22$