Question
If ₹5,000 is invested at an annual interest rate of 8%
compounded quarterly, at what time will it grow to ₹5,202?Solution
P= 5000, A =5202, r= 8% yearly =8/4=2 Quarterly. A =P (1+r/100) t 5202 =5000(1+2/100) t 5202/5000 = (1+1/50) t 2601/2500 = (51/50) t (51/50)2 = (51/50) t Compare both sides – t =2 Quarter =1/2 year.
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