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What will happen if interest is compounded quarterly? How many conversion periods will be there? What about the quarter year rate . how much will it be of the annual rate? |
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Answer» Here C.I will be calculated for every 3 months. So, 4 time periods will be occurred in 1 year. Rate of Interest (R) = R/4 [ ∵ 12/3 = 4 ] Amount = \(P[1\,+\,(\frac{\frac R4}{100})]^4\) A = \(P[1\,+\,(\frac{R}{400})]^4\) |
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