Where, P = Principal

R = Rate of interest p.a (per annum i.e annually)

n = number of years.

1) Find the compound interest on $320,000 for one year at the rate of 20% p.a., if the interest rate is compounded quarterly.

Here, P = $320,000, R = 20% p.a. and n = 1 year.

∴ Amount after 1 year = P ( 1 + R/4 )

= 320,000 x ( 1 + 0.20/4 )

= 320,000 x ( 1 + 0.05)

= 320,000 x (1.05 )

= 320,000 x 1.21550

= Rs. 388,962

∴ Compound interest = 388,962 – 320,000 = 68,962

________________________________________________________________

2)Ryan deposited $ 7500 in a bank which pays him 12% interest p.a. compounded quarterly. What is the amount which he receives after 9 months?

Here, P = $ 7500, R = 12% p.a. and n = 9 months = 9/12 year = 3/4 year

∴ Amount after 9 months = P ( 1 + R/100 )

= 7500 x ( 1 + 0.12/4 )

= 7500 x ( 1 + 0.03 )

= 7500 x ( 1.03)

= 7500 x 1.092727

= $ 8195.45

________________________________________________________________

3)Jacob deposited $ 9000 in a bank which pays him 8% interest p.a. compounded quarterly. What is the amount which he receives after 6 months?

Here, P = $ 9000, R = 8% p.a. and n = 6 months = 6/12 year = 1/2 year

∴ Amount after 6 months = P ( 1 + R/100 )

= 9000 x ( 1 + 0.08/4 )

= 9000 x ( 1 + 0.02 )

= 9000 x ( 1.02)

= 9363.6

= $ 9363.60

• Find Compound Interest when interest is compounded Half yearly

• Find Compound Interest when interest is compounded Quarterly

• Find CI when interest is compounded annually but Rates are different

• Finding Principal

• Finding Time Period of Investment

• Finding Rate of Interest

GMAT

GRE

1st Grade

2nd Grade

3rd Grade

4th Grade

5th Grade

6th Grade

7th grade math

8th grade math

9th grade math

10th grade math

11th grade math

12th grade math

Precalculus

Worksheets

Chapter wise Test

MCQ's

Math Dictionary

Graph Dictionary

Multiplicative tables

Math Teasers

NTSE

Chinese Numbers

CBSE Sample Papers