The compound interest on a sum of Rs. 5000 at 8% per annum

The compound interest on a sum of Rs. 5000 at 8% per annum for 9 months when interest is compound quarterly is :

When interest is compound quarterly ,

Rate of interest =	8	= 2% per quarter , Time = 3 quarters
	4

Here , Principal ( P ) = ₹ 5,000 , Compound Interest ( CI ) = ?
We can find required answer with the help of given formula ,

C.I. = P			1 +	R		^T	− 1
				100

C.I. = 5000			1 +	2		³	− 1
				100

C.I. = 5000[(1.02)³ - 1]
C.I. = 5000 (1.061208 – 1)
C.I. = 5000 × 0.061208 = Rs. 306.04