Question

manu took a loan of Rs 5000 for one year at 12%per annum compounded quarterly .How much he has to pay after one year.​

Answer 1

Amount pay after one year for compounded quarterly = Rs 5627.54

Explanation:

Given as,

Manu took loan of Rs 5000 , So, Principal = Rs 5000

The rate of interest applied = 12% per annum compounded quarterly

The loan took for period of year = one

Now from the compounded method :

For compounded quarterly

Amount = principal
`(1 + (Rate)/(4* 100))^(4* Time)`

Or, Amount = Rs 5000
`(1+ (12)/(4* 100))^(4)`

Or, Amount = 5000
`((103)/(100))^(4)`

Or, Amount = 5000 × 1.1255

∴ Amount = Rs 5627.54

Hence , The amount which Manu pay after one year at 12% per annum compounded quarterly is Rs 5627.54 Answer