A sum of taken for one year at 16% per annum. If the interest is charged after every three

months, then the rate will

By Ella

A sum of taken for one year at 16% per annum. If the interest is charged after every three

months, then the rate will be​

About the author
Ella

2 thoughts on “A sum of taken for one year at 16% per annum. If the interest is charged after every three <br /><br />months, then the rate will”

  1. Answer:

    To strictly answer the question, if interest is compounded every 3 months, in onee year, interest will be charged 4 times (12/3 = 4

    Reply
  2. Answer:

    Say the amount borrowed is Rs.100 on 1 January 2018. Compounded at 16% per quarter (every 3 months), we have:


    On 1 April 2018


    100 + (100* 16/100*3/12) = 104


    On 1 July 2018


    104 + (104*16/100*3/12) = 108.16


    On 1 October 2018


    108.16 + (108.16*16/100*3/12) = 112.49


    On 1 January 2019


    112.49 + (112.49*16/100*3/12) = 116.99


    The interest will be calculated for 4 times in a year on the mentioned dates, with the effective rate coming at around 17%.

    Step-by-step explanation:

    Please mark me as brainliest.

    Reply

Leave a Comment