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Find the amount of Rs.2000 after 10 years at 8% converted quarterly for the first 4 years and at 6% converted monthly thereafter. (a) Rs.3931.78 (b) Rs.4025.50 (c) Rs.2600?
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Find the amount of Rs.2000 after 10 years at 8% converted quarterly fo...
Calculation of Compound Interest:
For the first 4 years, the interest rate is 8% compounded quarterly. Therefore, the quarterly interest rate is 2% (8%/4).
After 4 years, the interest rate changes to 6% compounded monthly. Therefore, the monthly interest rate is 0.5% (6%/12).
The total number of quarters in 10 years is 40 (4 quarters per year x 10 years). Therefore, the total number of compounding periods will be 40 quarters for the first 4 years and 120 months for the remaining 6 years.
Calculation for first 4 years:
Principal = Rs. 2000
Quarterly interest rate = 2%
Number of quarters = 4 years x 4 quarters per year = 16 quarters
Compound Interest = P(1 + r/n)^(nt) - P
= 2000(1 + 0.02/1)^(1 x 16) - 2000
= Rs. 3030.41
Amount after 4 years = Principal + Compound Interest
= Rs. 2000 + Rs. 3030.41
= Rs. 5030.41
Calculation for remaining 6 years:
Principal = Rs. 5030.41
Monthly interest rate = 0.5%
Number of months = 6 years x 12 months per year = 72 months
Compound Interest = P(1 + r/n)^(nt) - P
= 5030.41(1 + 0.005/1)^(1 x 72) - 5030.41
= Rs. 1144.09
Amount after 10 years = Principal + Compound Interest
= Rs. 5030.41 + Rs. 1144.09
= Rs. 6174.50
Therefore, the amount of Rs.2000 after 10 years at 8% converted quarterly for the first 4 years and at 6% converted monthly thereafter is Rs.6174.50.
Answer: (c) Rs.2600
For the first 4 years, the interest rate is 8% compounded quarterly. Therefore, the quarterly interest rate is 2% (8%/4).
After 4 years, the interest rate changes to 6% compounded monthly. Therefore, the monthly interest rate is 0.5% (6%/12).
The total number of quarters in 10 years is 40 (4 quarters per year x 10 years). Therefore, the total number of compounding periods will be 40 quarters for the first 4 years and 120 months for the remaining 6 years.
Calculation for first 4 years:
Principal = Rs. 2000
Quarterly interest rate = 2%
Number of quarters = 4 years x 4 quarters per year = 16 quarters
Compound Interest = P(1 + r/n)^(nt) - P
= 2000(1 + 0.02/1)^(1 x 16) - 2000
= Rs. 3030.41
Amount after 4 years = Principal + Compound Interest
= Rs. 2000 + Rs. 3030.41
= Rs. 5030.41
Calculation for remaining 6 years:
Principal = Rs. 5030.41
Monthly interest rate = 0.5%
Number of months = 6 years x 12 months per year = 72 months
Compound Interest = P(1 + r/n)^(nt) - P
= 5030.41(1 + 0.005/1)^(1 x 72) - 5030.41
= Rs. 1144.09
Amount after 10 years = Principal + Compound Interest
= Rs. 5030.41 + Rs. 1144.09
= Rs. 6174.50
Therefore, the amount of Rs.2000 after 10 years at 8% converted quarterly for the first 4 years and at 6% converted monthly thereafter is Rs.6174.50.
Answer: (c) Rs.2600
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Find the amount of Rs.2000 after 10 years at 8% converted quarterly for the first 4 years and at 6% converted monthly thereafter. (a) Rs.3931.78 (b) Rs.4025.50 (c) Rs.2600?
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Find the amount of Rs.2000 after 10 years at 8% converted quarterly for the first 4 years and at 6% converted monthly thereafter. (a) Rs.3931.78 (b) Rs.4025.50 (c) Rs.2600? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Find the amount of Rs.2000 after 10 years at 8% converted quarterly for the first 4 years and at 6% converted monthly thereafter. (a) Rs.3931.78 (b) Rs.4025.50 (c) Rs.2600? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find the amount of Rs.2000 after 10 years at 8% converted quarterly for the first 4 years and at 6% converted monthly thereafter. (a) Rs.3931.78 (b) Rs.4025.50 (c) Rs.2600?.
Find the amount of Rs.2000 after 10 years at 8% converted quarterly for the first 4 years and at 6% converted monthly thereafter. (a) Rs.3931.78 (b) Rs.4025.50 (c) Rs.2600? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Find the amount of Rs.2000 after 10 years at 8% converted quarterly for the first 4 years and at 6% converted monthly thereafter. (a) Rs.3931.78 (b) Rs.4025.50 (c) Rs.2600? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find the amount of Rs.2000 after 10 years at 8% converted quarterly for the first 4 years and at 6% converted monthly thereafter. (a) Rs.3931.78 (b) Rs.4025.50 (c) Rs.2600?.
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