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What amount of compound interest can be obtained on an amount of rs 9650 at the rate of 6 pcpa at the end of 3 years?
Wiki User
∙ 12y ago
= 9650*[(1.06)3 - 1]= 9650*0.191016 = 1843.30
Wiki User
∙ 12y ago
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Why is compound interest better than simple interest?
Compound interest is better than simple (or "nominal") interest because compound interest allows you to add your accumulated interest back to your total every given term (i.e. each day, each week, each month, quarterly, annually, etc.), thus increasing the amount of money you are earning interest on.Example:Say you deposit 100 dollars for 2 years at 10% per year in 2 banks, one which does not compound your interest (Bank A), and one that compounds annually (Bank B).Bank A:After 1 year: 100 x 1.10 (1.10 = your amount + 10%) = 110After 2 years: 100 x 1.20 (1.20 = your amount +10% x 2) = 120Bank B:After 1 year: 100 x 1.10 = 110but then instead of using 100 again, you add the additional 10 back into your total and collect interest on 110 dollars in year two.So:After 2 years: 110 x 1.10 (1.10 = your amount + 10%) = 121
At a certain rate of compound interest rs 15320 becomes rs 30640 in 6 years what is the rate of interest?
12%
What is the total amount of money owed if 1250 was borrowed for four years at 3.5 interest?
What is the total amount of money owed if $1,250 was borrowed for four years at 3.5% interest?
What is the interest rate needed for an investment of 7000 to grow to an amount of 9500 in 3 years if interest is compound monthly?
The formula to calculate the present amount including compound interest is, A = P(1 + r/n)nt , where P is the principal amount, r is the annual rate expressed as a decimal , t is the number of years, and n is number of times per year that interest is compounded. 9500 = 7000(1 + r/12)^(12 x 3) = 7000(1 + r/12)^36 Then, (1 + r/12)^36 = 9500 / 7000 = 1.3571429 approx (1 + r/12) = 36√1.3571429 ≅ 1.0085189 r/12 = 0.0085189 r = 12 x 0.0085189 ≅ 0.1022268 Then the required interest rate is 10.223% (3dp)
How much would 300 invested at 7 interest compounded continuously be worth after 4 years Round your answer to the nearest cent. Do not include units in your answer.?
7% compound interest means that the amount of money increases, every year, by a factor of 1.07. After 4 years, you have 300 x 1.07^4.
What is the compound amount of 8 percent for 23 years?
Interest alone would be 4.871463646 times the amount of the principle.
After 6 years what is the total amount of a compound interest investment of 35000 at 4 percent interest compounded quarterly?
$44,440.71
What is the equation to find compound interest?
If the rate of annual interest is r% the period is n years and the amount invested is y Then the compound interest is y*(1+r/100)^n - y
Can you give me the continuous compound interest formula?
Compound Interest FormulaP = principal amount (the initial amount you borrow or deposit)r = annual rate of interest (as a decimal)t = number of years the amount is deposited or borrowed for.A = amount of money accumulated after n years, including interest.n = number of times the interest is compounded per yearExample:An amount of $1,500.00 is deposited in a bank paying an annual interest rate of 4.3%, compounded quarterly. What is the balance after 6 years?Solution:Using the compound interest formula, we have thatP = 1500, r = 4.3/100 = 0.043, n = 4, t = 6. Therefore, So, the balance after 6 years is approximately $1,938.84.
How do you get from compound interest after two years back to the original amount?
Suppose thye original amount is y and the rate of interest is r%. Then the total value after two years is y*(1+r/100)2 = y*(1 + r/50 + r2/10000) So the compound interest, alone, after 2 years is y*(r/50 + r2/10000) So y = compound interest/(r/50 + r2/10000)
In how many years will Rs.1000 amount to Rs.1728 at 20 percent compound interest.?
3
How do you figure out your total amount of money after interest?
It depends on whether it is simple or compound interest. The formula for simple interest is A = P(1+rt), where A = amount of money after t years, P = Principal, or the amount of money you started with, and r = the annual interest rate, expressed as a decimal (i.e. 7% = 0.07). For compound interest, the formula is A = P(1+r)t.
What would be the compound interest obtained on an amount of Rs3000 at the rate of 8 percent pa after 2 years?
After the first year: 3000 X 8% = 240, so you have 3240.After the 2nd year: 3240 x 8% = 259.20, so the total interest is 240 + 259.20 = 499.20
What is the correct formula for compound interest?
Suppose the amount invested (or borrowed) is K, Suppose the rate of interest is R% annually, Suppose the amount accrues interest for Y years. Then the interest I is 100*K[(1 + R/100)^Y - 1]
What is formula of compound interest?
Compound Interest for n compounds per year:A = P(1+r/n)ntWhereA = amount of money at time tP = Principal balancer = yearly interest raten = number of compunds per yeart = time in yearsContinuous Compound Interest:A = PertA = amount of money at time tP = Principal balancer = yearly interest ratet = time in years
What would be the amount of compound interest on 8000 invested for two years at 12 percent compounded semiannually?
Semiannually over two years is equivalent to 4 periods. If the interest is 12% every 6 months, then the amount of interest is It is 8000*[(1.12)4 -1] =4588.15
How does compound interest work?
AnswerCompound interest works like this.Take a principle (The amount of money you deposit) of $10,000.Lets say that the interest rate is 8% and that it compounds anually.At the end of one year you would have $10,800.With simple interest, at the end of two years, you would have $11,600 because you only earn interst on the principle.After three years you would have $12,400.However, with compound interest, you will earn interest on not just the principle, but the compounded interest as well.Therefore, with compound interest, at the end of two years, you would have 11,664.After three years it would be $12,597.12 and so on.
