Calculating the Future Value of Rs 2000 after 10 Years

To calculate the future value of Rs 2000 after 10 years, we need to take into account the interest rate and the compounding frequency. In this case, the interest rate is 8% for the first 4 years and 6% thereafter, and the compounding frequency changes from quarterly to monthly.

Calculating the Future Value for the First 4 Years

To calculate the future value of Rs 2000 for the first 4 years, we need to use the following formula:

FV = PV * (1 + r/n)^(n*t)

where FV is the future value, PV is the present value, r is the annual interest rate, n is the compounding frequency, and t is the time period.

In this case, the present value is Rs 2000, the annual interest rate is 8%, the compounding frequency is quarterly (i.e., n = 4), and the time period is 4 years. Therefore, we have:

FV = 2000 * (1 + 0.08/4)^(4*4) = Rs 3,102.05

Calculating the Future Value for the Next 6 Years

To calculate the future value of Rs 3,102.05 for the next 6 years, we need to use the same formula, but with a different interest rate and compounding frequency. In this case, the annual interest rate is 6% and the compounding frequency is monthly (i.e., n = 12). Therefore, we have:

FV = 3102.05 * (1 + 0.06/12)^(12*6) = Rs 4,569.65

Final Answer

Therefore, the amount of Rs 2000 after 10 years at 8% converted quarterly for the first 4 years and 6% converted monthly thereafter is Rs 4,569.65.