Answer:
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = ₹256
r = 100% = 100/100 = 1
n = 4 because it was compounded 4 times in a year.
t = 1 year
Therefore,
A = 256(1 + 1/4)^4 × 1
A = 256(1 + 0.25)^4
A = 256(1.025)^4
A = ₹283
The compound interest is
283 - 256 = ₹27
