Find Out the Amount, Interest is Compounded Quarterly? If

The Amount on rs.2560 in 6 months at 25% per annum, if the interest is compounded quarterly, is;

  1. Rs.2,890
  2. Rs.2,790
  3. Rs.2,870
  4. None of these
Nitin Baudh Learner Asked on 7th August 2015 in Maths.
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2 Answer(s)

Answer: (1) Rs.2890

Explanation:-
Given
Amount = Rs.  2560,   Time = 6 months = 6/3 = 2 quarters  (1 quarter = 3 months)
Rate of interest = 25 % p. a.    = 25/4 % per quarter

Formula-
Compound Interest = P [(1 + R/100)t – 1]
Where, P = principal, R = rate, t = time.

Then, Amount = 2560 ( 1 + 25/4 x 100)^ 2
= 2560 ( 1 + 1/16)^2
= 2560 (17/16)^2
= 2560 x 17 x 17 /16 x 16
= Rs. 2890

Then, the amount is Rs.2890.
Hence, the answer is (1) Rs.2890.

Anurag Mishra Professor Answered on 9th August 2015.
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Answer : Rs 2890

Amount = Rs. 2560
Time = 6 months = 2 quarters
interest rate = 25 % pa = 25/4 per quarter
compounded quarterly

Interest for 1 quarter = (2560*1*25/4)/100 = 160

Amount for next quarter = 2560+160 = 2720
Interest for 2nd quarter = (2720*1*25/4)/100 =  170

Amount after 2 quarters (6 months) = 2720+170 =2890

KumarDilip Newbie Answered on 9th August 2015.
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