Rekha deposited Rs. 16000 in a foreign bank which pays interest at the

1.	Rekha deposited Rs. 16000 in a foreign bank which pays interest at the rate of 20% per annum compounded quarterly, find the interest received by Rekha after one year.
Answer» Given details are, Principal (p) = Rs 16000 Rate (r) = 20% per annum = 20/4 = 5% (quarterly) Time (t) = 1 year = 4 quarters of a year By using the formula, A = P (1 + R/100)ⁿ = 16000 (1 + 5/100)⁴ = 16000 (105/100)⁴ = Rs 19448.1 ∴ CI = Rs 19448.1 – 16000 = Rs 3448.1

Rekha deposited Rs. 16000 in a foreign bank which pays interest at the rate of 20% per annum compounded quarterly, find the interest received by Rekha after one year.

Answer»

Given details are,

Principal (p) = Rs 16000

Rate (r) = 20% per annum = 20/4 = 5% (quarterly)

Time (t) = 1 year = 4 quarters of a year

By using the formula,

A = P (1 + R/100)ⁿ

= 16000 (1 + 5/100)⁴

= 16000 (105/100)⁴

= Rs 19448.1

∴ CI = Rs 19448.1 – 16000 = Rs 3448.1