An amount is lent at a nominal rate of 4.5% per annum compounded quarterly. What wouldbe the gain in rupees over when compounded annually.(a) 0.56(c) 0.76(b) 0.45(d) 0.85 About the author Harper
Step-by-step explanation: Correct option is C 0.76 Let the principal be Rs.1 and rate is 4.5% per annum Compounded Annually:- A=P(1+ 100 r ) n Compounded Quaterly:- A=P(1+ 400 r ) 4n A=1(1+ 100 4.5 ) 1 = 100 104.5 =1.04500 A=1(1+ 400 4.5 ) 4 =( 400 404.5 ) 4 =1.04576 Gain =0.00076 Now, gain for Rs.1=0.00076 Gain for Rs.1000=0.76 Reply
Step-by-step explanation:
Correct option is
C
0.76
Let the principal be Rs.1 and rate is 4.5% per annum
Compounded Annually:-
A=P(1+
100
r
)
n
Compounded Quaterly:-
A=P(1+
400
r
)
4n
A=1(1+
100
4.5
)
1
=
100
104.5
=1.04500
A=1(1+
400
4.5
)
4
=(
400
404.5
)
4
=1.04576
Gain =0.00076
Now, gain for Rs.1=0.00076
Gain for Rs.1000=0.76