What will be the total compound interest for 9 months on Rs 8000 at the rate of 20% if the interest is compounded quarterly?

P = Rs 8, 000T = 9 months = 3 quartersR = 20 % per annum = 5 % per quarter\[A = 8, 000 \left( 1 + \frac{5}{100} \right)^3 \]\[ = 8, 000 \left( 1 . 05 \right)^3 \] = 9, 261The required amount is Rs 9, 261.Now, CI = A - P= Rs 9, 261 - Rs 8, 000

= Rs 1, 261

Find the compound interest on Rs. 8000 for 9 months at 20% per annum compounded quarterly.

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[ Simple interest = P×T×R×100 Amount after first quarter = Rs. 8000 + Rs. 400 = Rs. 8400 Or principal for the second year = Rs. 8400

Interest for the second quarter


=8400×5×1100=Rs.420
Amount after second quarter = Rs. 8400 + Rs. 420 = Rs. 8820 Or principal for the third quarter = Rs. 8820

Interest for the third quarter


=8820×5×1100=Rs.441
Compound interest for 9 months or 3 quarters = Rs. 400 + Rs. 420 + Rs. 441 = Rs. 1261

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