Question 59

Mr. Yashwanth invested money in PD. How much will he get on maturity, if Rs.10000 is invested at 20% per annum compound interest for 6 months, compounded quarterly?

Solution

Principal = Rs. 16000; Time = 9 months =2 quarters;
Rate = 20% per annum = 5% per quarter.

$$AMOUNT = P[1+\frac{\frac{R}{4}}{100}]^{4N}$$

where $$N=\frac{2}{4}$$

$$AMOUNT = 16000[1+(\frac{5}{100}]^{2}$$

$$AMOUNT = 16000[\frac{105}{100}]^{2}$$

$$Amount=11025$$

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