We need to calculate the compound interest and the amount which is compounded quarterly.
Since,it is compoundedquarterlythe principal is compoundedover 3months a year.Then,the rate becomes ¼of 100i.e.,25%and the time becomes 4times i.e.,4years.
Calculatingthe amount by,
Where,
p(principal) = 256
r(rate) = 25%
n(time) = 4 years
So,
So ,the amount is ₹625
Compound interestis :-
=Amount - principal
= 625 - 256
= 369
_____________________
Compounded quarterly :
Quarterly is an interval over 3 months. So whenever, an amount is compounded quarterly, the time is multiplied by 4 and the rate is divided by 4.
Answers & Comments
Answer:
Explanation:
Given,
We need to calculate the compound interest and the amount which is compounded quarterly.
Since, it is compounded quarterly the principal is compounded over 3 months a year. Then, the rate becomes ¼ of 100 i.e., 25% and the time becomes 4 times i.e., 4 years.
Calculating the amount by,
Where,
So,
So ,the amount is ₹625
Compound interest is :-
= Amount - principal
= 625 - 256
= 369
_____________________
Compounded quarterly :
Quarterly is an interval over 3 months. So whenever, an amount is compounded quarterly, the time is multiplied by 4 and the rate is divided by 4.
Formula used :
Amout formula :