UrbanPro
true

Take Tuition from the Best Tutors

  • Affordable fees
  • 1-1 or Group class
  • Flexible Timings
  • Verified Tutors

Compound Interest

Vijaya Kumar Jayanthi
06/11/2017 0 0

The formula for annual compound interest, including principal sum, is:
A = P (1 + r/n) (nt)

Where:

A = The future value of the investment/loan, including interest.
P = The principal investment amount (the initial deposit or loan amount).
r =  The annual interest rate (decimal).
n = The number of times that interest is compounded per year.
t =  The number of years the money is invested or borrowed for.

If an amount of Rs 5,000 is given at an annual interest rate of 5%, compounded monthly, the value of the investment after 10 years can be calculated as follows:

P = 5000. r = 5/100 = 0.05 (decimal). n = 12. t = 10.

If we plug those figures into the formula, we get:

A = 5000 (1 + 0.05 / 12) ^ (12(10)) = 8235.05.

So, the investment balance after 10 years is Rs 8,235.05

0 Dislike
Follow 2

Please Enter a comment

Submit

Other Lessons for You

Trigonometry Ratios.
Trigonometry is a branch of mathematics deals with the relationships between angles and sides of triangle. Since there are three sides of a triangle, there may six combination of ratios called trigonometicy...

Multiplication Tricks
1) Multiplication with 11 23 X 11= 253 2___3 253 (2+3=5) 623 X 11= 6853 6_____3 6____53 (2+3= 5) 6853 (6+2= 8) You can see multiplication can be done quickly by starting with the first and last...
P

Priya

0 0
0

Converting Fractions, Decimals, and Percents
A fraction to a decimal: Divide the denominator (the bottom part) into the numerator (the top part): 1/4 = 1 ÷ 4.00 = 0.25 A fraction to a percent: Multiply the fraction by 100 and...
A

Amrtha S.

0 0
0

Sound
How is sound produced? Sound is produced by rapid vibration (rapid to and fro motion) of objects. E.g.: Guitar, Bell, Vocal cord, etc. Propagation of sound: Sound travels through a medium (object through...
W

WISDOM EDUCATION

1 0
0

Difference Between Atom and Molecule
An atom is smallest particle in an element that has the properties of the element. It is not possible to breakdown the atom further retaining the properties of the element. Atoms are not visible to the...
X

Looking for Tuition Classes?

The best tutors for Tuition Classes are on UrbanPro

  • Select the best Tutor
  • Book & Attend a Free Demo
  • Pay and start Learning

Take Tuition with the Best Tutors

The best Tutors for Tuition Classes are on UrbanPro

This website uses cookies

We use cookies to improve user experience. Choose what cookies you allow us to use. You can read more about our Cookie Policy in our Privacy Policy

Accept All
Decline All

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more