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Find the amount to be paid …

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Find the amount to be paid at the end of 1 years on Rs. 1800 at 8% per annum compounded quarterly.
  • 1 answers

Preeti Dabral 1 year, 8 months ago

P = Rs. 1800
R = 8% per annum
{tex} = \frac{1}{4} \times 8\% {/tex} quarterly
= 2% quarterly
n = 1 year
= 4 quarters
{tex}\therefore A = P{\left( {1 + \frac{R}{{100}}} \right)^n}{/tex}
{tex} = 1800{\left( {1 + \frac{2}{{100}}} \right)^4}{/tex}
{tex} = 1800{\left( {1 + \frac{1}{{50}}} \right)^4}{/tex}
{tex} = 1800{\left( {\frac{{51}}{{50}}} \right)^4}{/tex}
{tex} = 1800 \times \frac{{51}}{{50}} \times \frac{{51}}{{50}} \times \frac{{51}}{{50}} \times \frac{{51}}{{50}}{/tex}
= Rs. 1948.38.

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