Find the compound interest on rs 16000 at 20

Asked by admin @ 17/08/2021 in Accountancy viewed by 450 People

Find the compound interest on rs. 16,000 at 20% per annum for 9 months, compounded quarterly.

Answered by admin @ 17/08/2021

P=16000
r= 20% per annum or 20/4 =5% quarterly
n= 9 month or 9/3=3quartly

so A=p (1+r/100)n
=16000 (1+5/100)3
=16000×1.05×1.05×1.05
=18522
I= a-p
=18522-16000
=2522

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