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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:

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 )

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