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