Q15 of 48 Page 118

Calculate compound interest on Rs. 1000 over a period of 1 year at 10% per annum, if interest is compounded quarterly?

Principal (P) = 1000

Rate of interest (R) = 10%


Time period (n) = 1 year


For quarterly, n = 4


Rate of interest (R) for quarterly =





= 1000


= 1103.81


∴ Amount = Rs. 1103.81


Interest = A-P


= 1103.81-1000


= 103.81


∴ compound interest = Rs. 103.81


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