Question

Calculate the amount and compound interest on

i) ₹15000 for 2 years at 10% per annum compounded annually.
ii) ₹15620 for 3/2 years at 8% per annum compounded half yearly.
iii) ₹100000 for 9 months at 4% per annum compounded quarterly.

Answer 1

Below in bold.

Explanation:

i) Amount = 15000(1 + 0.10)^2 = 18,150.

Interest = 3,150.

ii) Amount = 15620(1 + 0.08/2)^(3/2*2)

= 15620(1 + 0.04)^3

= 17,570.38.

Interest =1,950.38.

iii) Amount = 100000(1 + 0.04/4)^(3)

= 100000(1 + 0.01)^3

= 103,030.1

Interest = 3030.1.