document.write( "Question 1100262: find the compound interest on Rs.16000 for one year at 20 percent per annum, the interest being compounded quarterly. \n" ); document.write( "
Algebra.Com's Answer #715285 by Theo(13342)\"\" \"About 
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annual interest rate = 20% / 100 = .2\r
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\n" ); document.write( "\n" ); document.write( "number of compounding period per year is 4.\r
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\n" ); document.write( "\n" ); document.write( ".2 / 4 = .05 interest rate per quarter.\r
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\n" ); document.write( "\n" ); document.write( "16000 * 1.05 ^ 4 = 19448.1\r
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\n" ); document.write( "\n" ); document.write( "general formula is f = p * (1 + r) ^ n\r
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\n" ); document.write( "\n" ); document.write( "f is the future value
\n" ); document.write( "p is the present value
\n" ); document.write( "r is the interest rate per time period.
\n" ); document.write( "n is the number of time periods.\r
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\n" ); document.write( "\n" ); document.write( "ij your problem the time period is quarters of a year.\r
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\n" ); document.write( "\n" ); document.write( "the yearly interest rate is divided by 4 to get the quarterly interest rate.
\n" ); document.write( "the number of years is multiplied by 4 to get the number of quarters.\r
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