Question
What will be the interest on Rs 4000 at the rate of 30%
per annum after 1 year when the interest is compounded every 4 months?Solution
Given - P= 4000, r= 30%, t = 1year=12months when the compound interest is every 4 months then r= 30 ×4/12=10% t= 12/4=3 so now A= P[1+r/100]ͭ A= 4000[1+10/100] ³ = 4000[11/10] ³ =4000[1331/1000] =4000×1331/1000 =5324 so now CI=A-P =5324-4000=1324 CI=1324
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