Since it's compound interest..
End of year 1 = 12000 + 1200 = 13200
End of year 2 = 13200 + 1320 = 14520
End of year 3 = 14520 + 1452 = 15972
The interest will be 8973.59 approx.
800 x (1.04)6 ie Rs1012.26
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.
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
Compound interest functions can be represented as [(1+i)^t]*n, where i = interest rate t = time n = original number [(1.05)^5]*1500 = $1914.42
That depends on how the interest works.Is it simple interest ? Is it compound interest ?If compound, then how often is it compounded ?8% simple interest turns $2 into $40 in 237.5 years .8% compound interest, compounded quarterly, does the job in 37.8 years .As you can see, it makes quite a difference.
The answer will depend on whether the interest is simple or compound.
The interest will be 8973.59 approx.
800 x (1.04)6 ie Rs1012.26
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.
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
About 8 years to double (divide 70 by the interest rate), and presumably another 8 years to double again? This supposes compound interest. For simple interest, 11 years to double and 33 to quadruple.
Eleven..? months? years?. Simple or compound interest?
Compound interest functions can be represented as [(1+i)^t]*n, where i = interest rate t = time n = original number [(1.05)^5]*1500 = $1914.42
R equals 4600, 8.73 percent interest compound quarterly for 9 years?
simple interst is when you earn interest from your principal but compound interest is when you earn interest from your principal as well as from your previous interest
$44,440.71