How to calculate compound interest on ₹ 8000?
Calculate the compound interest for the second year on ₹ 8000 for three years at 10\% p.a. Also find the sum due at the end of third year. Rate of interest = 10\% p.a. So the amount after the first year or principal for the second year = 8000 + 800 = ₹ 8800 So the amount after second year or principal for the third year = 8800 + 880 = ₹ 9680 4.
How do you calculate simple interest on a loan?
Calculate the simple interest for the loan or principal amount of Rs. 5000 with the interest rate of 10\% per annum and the time period of 5 years. Applying the values in the formula, you will get the simple interest as 2500 by multiplying the loan amount (payment) with the interest rate and the time period.
What is the time period of simple interest?
Time: This is the time period for which the money is lent or the time period in which the money has to be returned with interest. As the name implies, the calculation of simple interest is pretty simple. Multiply the principal amount with the number of years and the rate of interest.
How do you calculate principal amount compounded annually for 2 years?
Say, when compounded annually for 2 years, the principal amount with interest accrued at the end of first year becomes the principal for the second year. Compound Interest Formula: Abbreviated as Amount = P * [1 + R/100] t, when compounded annually. Sometimes, the interest is also calculated half-yearly or quarterly.
What is added to the amount borrowed in the first year?
In the first year interest is added to the amount borrowed. A man borrows Rs 21,000 at a 10\% compound interest rate. How much does he have to pay annually at the end of each year to settle his loan in two years? Annual rate of interest: 10\%, Instalment : I=?, Time :t=2 years In the first year interest is added to the amount borrowed.
How many years will a amount double itself at 10\% compounded quarterly?
In how many years will a amount double itself at 10\% interest rate compounded quarterly? Ans. t = (log (A/P) / log (1+r/n)) / n = log (2) / log (1 + 0.1 / 4) / 4 = 7.02 years 3. If interest is compounded daily, find the rate at which an amount doubles itself in 5 years?
How to solve for any variable in compound interest formula?
You can solve for any variable by rearranging the compound interest formula as illustrated in the following examples:- 1. What is the compound interest of 75000 at 7.9\% per annum compounded semi-annually in 3 years? Ans. A = P (1+r/n) nt = 75000 (1 + (7.9 / 100) / 2) 6 = 94625.51 2.