The amount on Rs. $1{,}000$ at $10\%$ p.a. for $1$ year compounded quarterly is approximately (use $(1…

The amount on Rs. $1{,}000$ at $10\%$ p.a. for $1$ year compounded quarterly is approximately (use $(1.025)^{4} = 1.10381$)
  1. Rs. $1{,}100.00$
  2. Rs. $1{,}102.50$
  3. Rs. $1{,}103.81$
  4. Rs. $1{,}110.00$

Solution

Quarterly rate $= 2.5\%$, $n = 4$ periods. $A = 1000 \times (1.025)^{4} = 1000 \times 1.10381 = 1103.81$.

Asked in: IMO

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