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What amount will be received on a sum of Rs 15000 in 1 1/ 4 yr at 12% pa, if interest is compounded quarterly?

Correct Answer: Rs 17389.12

Explanation:

Given, P = Rs 15000, R = 12 %
and n = 11/4 = 5/4 Yr
According to the formula,
Amount = p [1 + R/(100 x 4)]4n
= 15000 x [1 + 12/(100 x 4)]4 x 5/4
= 15000(412/400)5
= 15000 (103/100)5
= 15000 x (103/100) x (103/100) x (103/100) x (103/100) x (103/100)
= (15 x 103 x 103 x 103 x 103 x 103) / 10000000
= Rs 17389.111
= Rs 17389.12 (approx )


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