Question

Ramnath deposited Rs 30,000 in a financial institution where compound interest is computed in every four months. The annual interest rate in 9%. How much amount Ramnath gets after 1 year?

Answer 1

Amount deposited = Rs 30,000

Rate of interest = 9 %

Amount gets after 1 year

= 30000 (1 × \(\frac{3}{100}\))³

= 30000 × \(\frac{103}{100}\) × \(\frac{103}{100}\) × \(\frac{103}{100}\)

= Rs. 32781.81