Q3 of 14 Page 93

Manu deposited 15,000 rupees in a financial establishment which pays interest compounded every 3 months, at 8% annual rate. How much would he get back after one year?

Investment = 15000Rs

Annual rate = 10%


Interest compounded in every 3 months. Interest compounded quarterly yearly.


Since Interest is compounded quarterly yearly, Interest has to be calculated four times a year.


Quarterly rate = 8/4=2%


Amount after a year=


= 16236.482416236


(.48<.5 ignored)


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