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

Explanation by: Umar Hassan

Given, P = ₹ 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
= ₹ 17389.111
= ₹ 17389.12 (approx )