ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    What will be the amount after 2 years on a Principal

    тАЬPтАЭ if compounding is done on a quarterly basis?
    A P*(1+r/4)4 Correct Answer Incorrect Answer
    B P*(1+r/4)8 Correct Answer Incorrect Answer
    C P*(1+r/4)2 Correct Answer Incorrect Answer
    D P/4*(1+r)8 Correct Answer Incorrect Answer
    E P/4 *(1+r/4)2 Correct Answer Incorrect Answer

    Solution

    If the compounding is done more than once in a year, then A = P*(1+ )m*t Where, ┬╖┬а┬а┬а┬а┬а┬а m = no. of periods in a year when compounding is being done ┬╖┬а┬а┬а┬а┬а┬а R = rate of interest p.a ┬╖┬а┬а┬а┬а┬а┬а t = time in years

    Practice Next
    More Alternate Sources of Finance Questions
    ask-question