CA Foundation Exam > CA Foundation Questions > A person deposited ₹5000 in bank .the deposit...
Start Learning for Free
A person deposited ₹5000 in bank .the deposit was left to accumlate at 6% compund quarterly for the first five years at 8% compound semi annully for the next 8 year .the compound amount AT the end of 13 years is
?
?
Most Upvoted Answer
A person deposited ₹5000 in bank .the deposit was left to accumlate at...
Solution:
Given,
Principal amount (P) = ₹5000
Rate of interest for the first 5 years (r1) = 6%
Rate of interest for the next 8 years (r2) = 8%
Compounding frequency for the first 5 years (n1) = 4 (quarterly)
Compounding frequency for the next 8 years (n2) = 2 (semi-annually)
Total time period (t) = 13 years
To calculate the compound amount at the end of 13 years, we need to find out the amount after 5 years and then use it as the principal amount for the next 8 years.
Calculation of Amount after 5 years:
The formula to calculate the compound amount (A) after t years at rate of interest (r) compounded n times in a year for a principal amount (P) is given by:
A = P(1 + r/n)^(n*t)
For the first 5 years,
P = ₹5000
r = 6%
n = 4 (quarterly)
t = 5 years
A = 5000(1 + 0.06/4)^(4*5)
A = ₹6789.48 (approx.)
Therefore, the amount after 5 years is ₹6789.48.
Calculation of Amount after 13 years:
Now, we will use this amount as the principal amount for the next 8 years at the rate of interest of 8% compounded semi-annually.
For the next 8 years,
P = ₹6789.48
r = 8%
n = 2 (semi-annually)
t = 8 years
A = 6789.48(1 + 0.08/2)^(2*8)
A = ₹14,115.10 (approx.)
Therefore, the compound amount at the end of 13 years is ₹14,115.10.
Hence, the compound amount at the end of 13 years is ₹14,115.10.
Given,
Principal amount (P) = ₹5000
Rate of interest for the first 5 years (r1) = 6%
Rate of interest for the next 8 years (r2) = 8%
Compounding frequency for the first 5 years (n1) = 4 (quarterly)
Compounding frequency for the next 8 years (n2) = 2 (semi-annually)
Total time period (t) = 13 years
To calculate the compound amount at the end of 13 years, we need to find out the amount after 5 years and then use it as the principal amount for the next 8 years.
Calculation of Amount after 5 years:
The formula to calculate the compound amount (A) after t years at rate of interest (r) compounded n times in a year for a principal amount (P) is given by:
A = P(1 + r/n)^(n*t)
For the first 5 years,
P = ₹5000
r = 6%
n = 4 (quarterly)
t = 5 years
A = 5000(1 + 0.06/4)^(4*5)
A = ₹6789.48 (approx.)
Therefore, the amount after 5 years is ₹6789.48.
Calculation of Amount after 13 years:
Now, we will use this amount as the principal amount for the next 8 years at the rate of interest of 8% compounded semi-annually.
For the next 8 years,
P = ₹6789.48
r = 8%
n = 2 (semi-annually)
t = 8 years
A = 6789.48(1 + 0.08/2)^(2*8)
A = ₹14,115.10 (approx.)
Therefore, the compound amount at the end of 13 years is ₹14,115.10.
Hence, the compound amount at the end of 13 years is ₹14,115.10.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
A person deposited ₹5000 in bank .the deposit was left to accumlate at 6% compund quarterly for the first five years at 8% compound semi annully for the next 8 year .the compound amount AT the end of 13 years is ?
Question Description
A person deposited ₹5000 in bank .the deposit was left to accumlate at 6% compund quarterly for the first five years at 8% compound semi annully for the next 8 year .the compound amount AT the end of 13 years is ? 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 A person deposited ₹5000 in bank .the deposit was left to accumlate at 6% compund quarterly for the first five years at 8% compound semi annully for the next 8 year .the compound amount AT the end of 13 years is ? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person deposited ₹5000 in bank .the deposit was left to accumlate at 6% compund quarterly for the first five years at 8% compound semi annully for the next 8 year .the compound amount AT the end of 13 years is ?.
A person deposited ₹5000 in bank .the deposit was left to accumlate at 6% compund quarterly for the first five years at 8% compound semi annully for the next 8 year .the compound amount AT the end of 13 years is ? 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 A person deposited ₹5000 in bank .the deposit was left to accumlate at 6% compund quarterly for the first five years at 8% compound semi annully for the next 8 year .the compound amount AT the end of 13 years is ? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person deposited ₹5000 in bank .the deposit was left to accumlate at 6% compund quarterly for the first five years at 8% compound semi annully for the next 8 year .the compound amount AT the end of 13 years is ?.
Solutions for A person deposited ₹5000 in bank .the deposit was left to accumlate at 6% compund quarterly for the first five years at 8% compound semi annully for the next 8 year .the compound amount AT the end of 13 years is ? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A person deposited ₹5000 in bank .the deposit was left to accumlate at 6% compund quarterly for the first five years at 8% compound semi annully for the next 8 year .the compound amount AT the end of 13 years is ? defined & explained in the simplest way possible. Besides giving the explanation of
A person deposited ₹5000 in bank .the deposit was left to accumlate at 6% compund quarterly for the first five years at 8% compound semi annully for the next 8 year .the compound amount AT the end of 13 years is ?, a detailed solution for A person deposited ₹5000 in bank .the deposit was left to accumlate at 6% compund quarterly for the first five years at 8% compound semi annully for the next 8 year .the compound amount AT the end of 13 years is ? has been provided alongside types of A person deposited ₹5000 in bank .the deposit was left to accumlate at 6% compund quarterly for the first five years at 8% compound semi annully for the next 8 year .the compound amount AT the end of 13 years is ? theory, EduRev gives you an
ample number of questions to practice A person deposited ₹5000 in bank .the deposit was left to accumlate at 6% compund quarterly for the first five years at 8% compound semi annully for the next 8 year .the compound amount AT the end of 13 years is ? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup