What amount of compound interest can be earned on 7500 at the rate of 20\% pa at the end of two years?
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What amount of compound interest can be earned on 7500 at the rate of 20\% pa at the end of two years?
Key Rules of Investment that enable Power of Compounding
| Year | Opening Balance | 10\% Interest |
|---|---|---|
| 2 | Rs 550,000.0 | Rs 60,000.0 |
| 3 | Rs 660,000.0 | Rs 72,000.0 |
| 4 | Rs 792,000.0 | Rs 86,400.0 |
| 5 | Rs 950,400.0 | Rs 103,680.0 |
At what rate of compound interest compounded annually will 7500 rupees become 9075 rupees in 2 years?
We have , Principal , P = Rs 7500 Time , n = 2 yrs Amount. A = P 1 + R 100 n ⇒ 9075 = 7500 1 + R 100 2 ⇒ 9075 7500 = 1 + R 100 2 ⇒ 121 100 = 1 + R 100 2 ⇒ 11 10 2 = 1 + R 100 2 ⇒ 1 + R 100 = 11 10 ⇒ R 100 = 11 10 – 1 ⇒ R 100 = 11 – 10 10 ⇒ R 100 = 1 10 ⇒ R = 10 So , rate of interest is 10.
How do you calculate compound interest in 2 months?
The monthly compound interest formula is used to find the compound interest per month. The formula of monthly compound interest is: CI = P(1 + (r/12) )12t – P where, P is the principal amount, r is the interest rate in decimal form, and t is the time.
What is the compound interest on Rs 16000 at 20 Pa for 9 months compounded quarterly?
2518 Rs
The compound interest on 16000 Rs. for 9 months at 20\% per annum, interest being compounded quarterly, is : [A]2518 Rs.
How do we calculate compound interest?
You can calculate compound interest with a simple formula. It is calculated by multiplying the first principal amount by one and adding the annual interest rate raised to the number of compound periods subtract one. The total initial amount of your loan is then subtracted from the resulting value.
How can calculate compound interest?
Compound interest is calculated by multiplying the initial principal amount by one plus the annual interest rate raised to the number of compound periods minus one. Interest can be compounded on any given frequency schedule, from continuous to daily to annually.
At what rate percent will a sum of 7500?
We will solve this equation to find the value of \[r\], and hence, the rate of interest compounded annually. Thus, we get that the sum of Rs. 7500 amounts to Rs. 8427 in 2 years, compounded annually at the rate $6\\% $ per annum.
In what time will Rs 1200 amount to Rs 1323 at 5 pa compounded annually?
1200, A = Rs. 1323 and r\% = 5\%. Thus, the required time is 2 years.
What is the total amount accrued with compound interest on principal?
The total amount accrued, principal plus interest, with compound interest on a principal of $10,000.00 at a rate of 3.875\% per year compounded 12 times per year over 7.5 years is $13,366.37. Paste this link in email, text or social media.
What is the total compound interest after 2 years?
The total compound interest after 2 years is $10 + $11 = $21 versus $20 for the simple interest. Because lenders earn interest on interest, earnings compound over time like an exponentially growing snowball.
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?
What is compound interest of 7500 rupees for 2 years 8 months?
So, compound interest of 7500 rupees for 2 years 8 months = (9670.34 – 7500) rupees = 2170.34 rupees. What did Warren Buffett mean when he said, “If you don’t find a way to make money while you sleep, you will work until you die”?