Question

In how may years ₹ 4,000 will amount to ₹ 14,400 at 10% p.a. Compounded interest payable quarterly ?

Answer 1

P = ₹4,000

F = ₹14,400

r = 10% = 0.10

m = 4 (because interest is compounded quarterly)

So, we can plug in these values into the formula:

n = (log(14400 / 4000)) / (log(1 + 0.10 / 4))

n = (log(3.6)) / (log(1.025))

n = 2.59

Therefore, it will take approximately 2.59 years for the investment of ₹4,000 to grow to ₹14,400 at a 10% annual interest rate compounded quarterly.