Question

Ramesh deposited Rs. 7500 in a bank which pays him 12% interest per annum compounded quarterly. What is the amount which he receives after 9 months.

Answer 1

Given details are,

Principal (p) = Rs 7500

Rate (r) = 12 % = 12/4 = 3 % (for quarterly)

Time = 9 months = 9/12years = 9/12 × 4 = 3 (for quarter in a year)

By using the formula,

A = P (1 + R/100) ⁿ

= 7500 (1 + 3/100)³

= 7500 (103/100)³

= Rs 8195.45

∴ Required amount is Rs 8195.45