Question
Calculate the final amount Poonam will receive if she
invests Rs. 2,500 at a compound interest rate of 80% per annum, compounded quarterly, over a period of 9 months.ÂSolution
Effective rate of interest = (80/4) = 20% per term Effective time period = (9/3) = 3 terms A = Sum (1 + R/100)t A = 2500 x (1 + 20/100)³ A = 2500 x (6/5)³ A = Rs 4,320
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