If P = Rs.1,000, i = 5% p.a, n = 4; amount and C.I. is:
To find the amount and compound interest, we need to use the compound interest formula:
A = P(1 + r/n)^(n*t)
CI = A - P
Let's calculate the amount first:
Where:
P = Principal (initial amount) = Rs.1,000
i = Interest rate per annum = 5% = 5/100 = 0.05 (in decimal)
n = Number of compounding periods per year = 4 (quarterly compounding)
t = Time in years = 4
Substituting the values into the formula:
A = 1000(1 + 0.05/4)^(4*4)
A = 1000 * (1.0125)^16
A ≈ 1000 * 1.2183
A ≈ Rs. 1,218.30
Now, let's calculate the compound interest:
CI = A - P
CI = Rs. 1,218.30 - Rs. 1,000
CI ≈ Rs. 218.30
Therefore, the amount is approximately Rs. 1,218.30 and the compound interest is approximately Rs. 218.30.