Ramesh deposited Rs 7500 in a bank which pays him 12% interest per annum compounded quarterly.

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 $8,195.45$.

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