Compound Interest Quarterly


 
 
Concept Explanation
 

Compound Interest Quarterly

Calculating Interest Compound Quarterly:

In this case the rate is divided by 4 and the time in years is multiplied by 4.

1. Find the compound interest on Rs. 160000 for 12 months at 820% per annum, compounded quarterly.

Principal= Rs 160000

Time = 12 months

       =frac{12}{12}; years=frac{12}{12} X 4= 4; times

Rate = 20% = 5 % when compounded quarterly

large amount = principalleft [ 1+frac{rate} {100}right ]^{time}

amount = 160000left [ 1+frac{5} {100}right ]^{4}

amount = 160000left [ 1+frac{1} {20}right ]^{4}

= 160000left [ frac{21} {20}right ]^{4}

= 160000; X ;frac{21} {20}; X ;frac{21} {20}; X ;frac{21} {20}; X ;frac{21} {20}

= 160000; X ;frac{21} {20}; X ;frac{21} {20}; X ;frac{21} {20}; X ;frac{21} {20}=194481

Compound Interest = amount - principal

                          = 194481-160000

                         = 34481 Rs.

Sample Questions
(More Questions for each concept available in Login)
Question : 1

 Find the compound interest on 10,000 Rupees if Rohit took loan from a bank for 1 year at 8 % per annum, compounded quarterly?

Right Option : C
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Explanation
Question : 2

Find the compound interest on Rs. 160000 for one year at the rate of 20% per annum, if the interest is compounded quarterly?

Right Option : A
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Explanation
Question : 3

If 1,500.00 rupees is invested at a compound interest rate 4.3% per annum compounded quarterly for 72 months, find the compound interest?

Right Option : C
View Explanation
Explanation
 
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