Find the compound interest and the total amount after one year if the interest is compounded quarterly. What's the total amount and compound interest?

Principal = ₹256
Rate of interest = 100 %

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P(1+r/n)^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = ₹256

r = 100% = 100/100 = 1

n = 4 because it was compounded 4 times in a year.

t = 1 year

Therefore,

A = 256(1 + 1/4)^4 × 1

A = 256(1 + 0.25)^4

A = 256(1.025)^4

A = ₹283

The compound interest is

283 - 256 = ₹27