Question:
Ramesh deposited Rs 7500 in a bank which pays him 12% interest per annum compounded quarterly. What is the amount which he receives after 9 months.
Solution:
Given:
$\mathrm{P}=$ Rs 7,500
$\mathrm{R}=12 \%$ p. a. $=3 \%$ quarterly
$\mathrm{T}=9$ months $=3$ quarters
We know that:
$\mathrm{A}=\mathrm{P}\left(1+\frac{\mathrm{R}}{100}\right)^{\mathrm{n}}$
$\mathrm{A}=7,500\left(1+\frac{3}{100}\right)^{3}$
$=7,500(1.03)^{3}$
$=8,195.45$
Thus, the required amount is Rs $8,195.45$.