Find the amount on Rs. 1500 for 12 months at 12% per annum, compounded

1.	Find the amount on Rs. 1500 for 12 months at 12% per annum, compounded quarterly.1. Rs. 1688.262. Rs. 1566.783. Rs. 1455.674. Rs. 1788.67
Answer» Correct Answer - Option 1 : Rs. 1688.26 Given Principal = Rs. 1500, Time = 12 months and Rate = 12% per annum Formula used A = P(1 + r/100)^t Where A, P, r and t represents amount, principal, rate and time respectively Concept When compound quarterly is given, then time is multiply by four and rate is divided by four. Calculation Rate = 12%/4 = 3% per annum Time = 12 months or 1 year ⇒ 1 × 4 ⇒ 4 A = P(1 + r/100)t ⇒ A = 1500(1 + 3/100)⁴ ⇒ A = 1500(103/100)⁴ ⇒ A = Rs. 1688.26 ∴ The amount is Rs. 1688.26.

Find the amount on Rs. 1500 for 12 months at 12% per annum, compounded quarterly.1. Rs. 1688.262. Rs. 1566.783. Rs. 1455.674. Rs. 1788.67

Answer» Correct Answer - Option 1 : Rs. 1688.26

Given

Principal = Rs. 1500, Time = 12 months and Rate = 12% per annum

Formula used

A = P(1 + r/100)^t

Where A, P, r and t represents amount, principal, rate and time respectively

Concept

When compound quarterly is given, then time is multiply by four and rate is divided by four.

Calculation

Rate = 12%/4 = 3% per annum

Time = 12 months or 1 year

⇒ 1 × 4

⇒ 4

A = P(1 + r/100)t

⇒ A = 1500(1 + 3/100)⁴

⇒ A = 1500(103/100)⁴

⇒ A = Rs. 1688.26

∴ The amount is Rs. 1688.26.

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