Compound Interest

When interest is Compounded Annually.

P = Principal

R = Rate of Interest

N = Number of Years

Amount = P + I

When interest is Compounded Half Yearly.

When interest is Compounded Quarterly.

When interest is Compounded Annually but time in Fraction.

When interest is Compounded Annually but rate of interest are different for different years.

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Questions :

Example 1 : Find Compound Interest on Rs. 5000 at 10% per annum for 2 Years.

Solution : Here, P = 5000, R = 10%, N = 2 Year

So, Compound Interest = 1050 Rs.

Example 2 : Find Compound Interest on Rs. 6250 at 14% per annum for 2 Years.

Solution : Here, P = 6250, R = 14%, N = 2 Year

So, Compound Interest = 1872.5 Rs.

Example 3 : Find Compound Interest on Rs. 5000 at 16% per Annum for 1 year. Compounded Half Yearly.

Solution : Here, P = 5000, R = 16%, N = 1 Year

So, Compound Interest = 832 Rs.

Aptitude