Find the compound interest on Rs 10000 for 1 year at 20% per annum compounded quarterly.

Explanation

Given, Rate of interest `= 20%` per annum `=20/4=5%` per quarter
Time `=1` year `=4` quarters
Principal `=`Rs.`10000`
Amount at the end of `1` year
`A=10000(1+5/100)^4`
` =10000×(1.05) ^4`
` =10000×1.21550625`
`=12155.0625`
Compund Interest `=A−P=12155.025−10000=2155.0625`.