Question 78

Find the compound interest on a sum of Rs. 125000 for- 9 months at the rate of 8 per cent per annum compounded quarterly.

Solution

Amount when interest is compounded quarterly

=> $$A = P (1 + \frac{\frac{R}{4}}{100})^{4T}$$

= $$1,25,000 (1 + \frac{\frac{8}{4}}{100})^{4 \times \frac{3}{4}}$$

= $$1,25,000 (1 + \frac{1}{50})^3$$

= $$1,25,000 \times \frac{51}{50} \times \frac{51}{50} \times \frac{51}{50}$$

= $$51 \times 51 \times 51 = $$Rs. $$1,32,651$$

$$\therefore$$ C.I. = $$1,32,651 - 1,25,000$$

= Rs. $$7,651$$

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