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Find the compound interest on 1000 for 9 months at 4% per annum compounded quarterly ​

User Sermolaev
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\sf Compound\:interest = P(1 + (r)/(100) )^(t) - P

We have,

  • P = $1000
  • R = 4%
  • T = 9/12 = 3/4


\tt \: CI = 1000(1 + (4)/(100) ) ^{ (3)/(4) } - 1000


\tt \: CI = 1000(1 + \frac{ \cancel4}{ \cancel{100}} ) ^{ (3)/(4) } - 1000


\tt \: CI = 1000(1 + ( 1)/( 25) ) ^{ (3)/(4) } - 1000


\tt \: CI = 1000((26)/( 25) ) ^{ (3)/(4) } - 1000


\tt \: CI = 1000 \sqrt[4]{ { ((26)/(25) )}^(3) } - 1000


\tt \: CI = 1000 (1.02985) - 1000


\tt \: CI = 1029.85- 1000


\tt \: CI = 29.85

User Benjamin Schmidt
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