Find the compound interest on Rs. 156250156250 at 32%32% per annum for 99 months, compounded quarterly
Question
Find the compound interest on Rs. 156250156250 at 32%32% per annum for 99 months, compounded quarterly
Solution
To calculate the compound interest, we need to use the formula:
A = P (1 + r/n)^(nt)
Where: A = the amount of money accumulated after n years, including interest. P = principal amount (the initial amount of money) r = annual interest rate (in decimal) n = number of times that interest is compounded per year t = time the money is invested for in years
Given: P = Rs. 156250156250 r = 32% per annum = 0.32 (in decimal) n = compounded quarterly = 4 times a year t = 99 months = 99/12 = 8.25 years
Substituting the given values into the formula:
A = 156250156250 (1 + 0.32/4)^(4*8.25)
Calculate the value inside the bracket first:
= 156250156250 (1 + 0.08)^(33)
Then calculate the power:
= 156250156250 (1.08)^33
Finally, multiply the principal amount by the calculated power to get the total amount after interest.
Subtract the principal from the total amount to get the compound interest.
Please note that this calculation requires a calculator with the ability to handle very large numbers.
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