Want this question answered?

Q: Find the amount and compound interest on rupees 7500 for 2 years and 8 months at 10 per annum compounded anually?

Write your answer...

Submit

Still have questions?

Continue Learning about Math & Arithmetic

Compound Interest is the interest which gets compounded in Specified time periods.. The formula for solving Compound Interest problems is as follows: A=P(1+R/100)n Where, A= Amount after Including Compound Interest P= Principle R= Rate % n= Time Period For Calculating Compound Interest: CI=A-P Where, CI= COmpound Interest A= Amount P= Principle For Eg: If Rs 1000 is lend @ 10% Compounded Anually for 2 years, then calculation will be done as follows: A= 1000 (1+10/100)2 = 1000 (1.1)2 = Rs 1210 & Compound Interest will be A-P i.e. Rs 1210-1000= Rs 210. Also, Whenever Compounded Half Yearly or Compounded Quarterly is given, the rate will be divided by 2 & 4 respectively & time period will be multiplied by 2 & 4 respectively. For Eg: if in the above eg, Compounded Half yearly is given, then take R= 5%, n = 4 years (4 half years in 2 years) & if Compounded Quarterly is given, then, take R= 2.5%, n= 8 (8 quarters in 2 years)

A= Principle amount(1+ (rate/# of compounded periods))(#of compounding periods x # of years)

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.

No. If the account is earning interest the current amount should be greater than the initial deposit.

Simple interest or compound interest? If simple --- I = prt = 300,000 x .05 x 12 total amount = I +p = answer above + 300,000 if compounded annually, P(t) = p((1+r)t) = 300,000 x ((1.05)12) this is total amount

Related questions

Compound Interest is the interest which gets compounded in Specified time periods.. The formula for solving Compound Interest problems is as follows: A=P(1+R/100)n Where, A= Amount after Including Compound Interest P= Principle R= Rate % n= Time Period For Calculating Compound Interest: CI=A-P Where, CI= COmpound Interest A= Amount P= Principle For Eg: If Rs 1000 is lend @ 10% Compounded Anually for 2 years, then calculation will be done as follows: A= 1000 (1+10/100)2 = 1000 (1.1)2 = Rs 1210 & Compound Interest will be A-P i.e. Rs 1210-1000= Rs 210. Also, Whenever Compounded Half Yearly or Compounded Quarterly is given, the rate will be divided by 2 & 4 respectively & time period will be multiplied by 2 & 4 respectively. For Eg: if in the above eg, Compounded Half yearly is given, then take R= 5%, n = 4 years (4 half years in 2 years) & if Compounded Quarterly is given, then, take R= 2.5%, n= 8 (8 quarters in 2 years)

$44,440.71

Simple interest (compounded once) Initial amount(1+interest rate) Compound Interest Initial amount(1+interest rate/number of times compounding)^number of times compounding per yr

A= Principle amount(1+ (rate/# of compounded periods))(#of compounding periods x # of years)

$491

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.

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

The formula for compound interest is Final amount = Base amount * (1+(rate of interest/times compounded per year))^(number of times compounded per year * how many years pass)To put this into PHP, it would go something like this:function calcInt($rate, $numYear, $yearsElapsed, $base){$finalAmount = $base*((1+($rate/$numYear))^($numYear*$yearsElapsed));return $finalAmount;}To call this function and print the output, put:echo $finalAmount(.05, 2, 4, 5000);That would output the final amount if the interest rate is 5%, it's compounded twice per year, 4 years elapse, and the initial amount was $5000.

No. If the account is earning interest the current amount should be greater than the initial deposit.

Approximately 7 years. The general rule is to divide 70 by the interest rate to get an approximation of how long it will take to double. If the interest is compounded annual you will have $194.88 after 7 years, and $214.37 after 8 years. Though if interest is compounded more regularly (ie. monthly or daily) this will grow at a slightly faster rate.

Simple interest or compound interest? If simple --- I = prt = 300,000 x .05 x 12 total amount = I +p = answer above + 300,000 if compounded annually, P(t) = p((1+r)t) = 300,000 x ((1.05)12) this is total amount

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. Then A = 2100(1 + 0.045/12)(12 x 3) = 2100 x 1.0037536 = 2402.92 The amount of interest earned = 2402.92 - 2100 = 302.92