Question

Find the amount to be paid at the end of 6 months on rupee 1800 at 8% per annum compounded quarterly. Plz give me with all the steps and ill mark uh as brainliest

Answer 1

Answer:

The amount to be paid is rupee 1872.72

Step-by-step explanation:

Compound Interest

It occurs when interest in the next period is earned on the principal sum plus previously accumulated interest.

The formula is:

$\displaystyle A=P\left(1+{\frac {r}{n}}\right)^{nt}}$

Where:

A = final amount

P = initial principal balance

r = interest rate

n = number of times interest applied per time period

t = number of time periods elapsed

The initial amount is P=1800 at r=8% = 0.08 during t=6 months (t=0.5 years) compounded quarterly. There are 4 quarters in a year, thus n=4.

Calculating A:

$\displaystyle A=1800\left(1+{\frac {0.08}{4}}\right)^{4*0.5}$

$\displaystyle A=1800(1.02)^{2}$

A = 1872.72

The amount to be paid is rupee 1872.72