Question
Ms. Hema invests Rs. 8000 for six months at 20% per
annum compounded quarterly. The total amount she gets after 6 months is :Solution
We know that, A = P (1 + R/10)n Here, the interest rate is 20% per annum, and interest is compounded quarterly. ∴ Interest rate per interest period is 20/4 = 5%. Also, the interest is calculated after six months, number of periods = 6/3 = 2 Amount = 8000 (1 + 5/100)2 => A = 8000 × 21/20 × 21/20 => A = Rs.8820
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