Hemchand depositsR 1,00,000 for 1 year and six months as fixedinterest rate of8% per annum. If the interest is compounded every three months, howill Hemchand get on maturity?deposit in a Rural Bank at anw much money

Hemchand depositsR 1,00,000 for 1 year and six months as fixedinterest

1.	Hemchand depositsR 1,00,000 for 1 year and six months as fixedinterest rate of8% per annum. If the interest is compounded every three months, howill Hemchand get on maturity?deposit in a Rural Bank at anw much money
Answer» using compound interest formulaA=P (1+r/n)^ntas n is no. of times interest is compounded in a year and here interest is compounded 4 times in a year every 3 monthsn=4given thatt=1year 6 months=1.5yearsr=8%=0.08P=Rs1,00,000putting values in formulaA=100000 (1+0.08/4)^(4×1.5)A=100000 (1.02)^6=100000×1.126162A=Rs112616.2