Answer:
Final amount = $5357.52
Step-by-step explanation:
Formula to be used,
Final amount =
Here, n = number of compounding in a year
t = Duration of investment
Now we substitute the given values in the question.
Final amount =
=
= 1210(4.4277)
= $5357.52
Given:
Principal = Rs. 2000
Rate of interest = 20% p.a. compounded quarterly.
Time = 1 year
To find:
The compound interest.
Solution:
Formula for amount:
where,
P = Principal
r = Rate of interest
t= Time
n = number of times interest compounded in an year.
Putting P=2000, r=0.2, n=4 and t=1, we get
Now, the compound interest is
Therefore, the compound interest is Rs 431.0125.