a boy invested rs. 60,000 at an interest rate of 12% per annum compounded every 3 month. What amount would he get i)after 1 year? ii)after 1 and half year
Looks like oobleck is not on line, but
yes you are right, it should have been
60000*1.03^6
Yes 12/4 = 3
ooops. Do you see my mistake?
It should be 1.03
@oobleck . Kindly reply
To calculate the amount the boy would get after 1 year and 1.5 years, we need to use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the principal amount (initial investment)
r = the annual interest rate (in decimal form)
n = the number of times the interest is compounded per year
t = the number of years
In this case, the boy invested Rs. 60,000 at an interest rate of 12% per annum, compounded every 3 months. Let's calculate the amount he would get after 1 year and after 1.5 years.
i) After 1 year:
P = Rs. 60,000
r = 12% per annum = 0.12 (as a decimal)
n = 4 (compounded every 3 months)
t = 1 year
Plugging in the values into the formula:
A = 60000(1 + 0.12/4)^(4*1)
A = 60000(1.03)^4
A ≈ Rs. 67,195.90
Therefore, after 1 year, the boy would get approximately Rs. 67,195.90.
ii) After 1.5 years:
P = Rs. 60,000
r = 12% per annum = 0.12 (as a decimal)
n = 4 (compounded every 3 months)
t = 1.5 years
Plugging in the values into the formula:
A = 60000(1 + 0.12/4)^(4*1.5)
A = 60000(1.03)^6
A ≈ Rs. 71,385.09
Therefore, after 1.5 years, the boy would get approximately Rs. 71,385.09.
60000*1.04^4
60000*1.04^6