We can also reduce the formula of compound interest of yearly compounded for quarterly as given below. Deducing a Formula for Compound Interest Example-3. EXERCISE 141 PAGE NO.
CI Compound interest.
A sum of 4000 is borrowed from the bank where the interest rate is 8 and the amount is borrowed for a period of 2 years. 31250 Annual rate of interest R 8 Rate of interest for a half year 1 2 8 4 Time n 1 1 2 years 3 half years Then the amount with the compound interest is given by A P 1 R 100 n 31250 1 4 100 3 31250 1 1 25 3 31250 25 1 25 3 31250 26 25 3 31250 26 25 26 25 26 25 Rs 2 17576 Rs 35152 Therefore compound interest amount - principal Rs 35152- 31250 Rs 3902. CBSE Class 8 Maths Compound Interest. T Number of years.