How do you find compound interest short trick?
- Example: If r% = 10% per annum.
- Solution: Rate is calculated half yearly so new r% = (10/2)% = 5%
- Concept5: When different rates are given for 2 years.
- Example: If principal is 1000 Rs and r(1st yr) = 4% and r(2nd yr) = 6%.
- Solution:
- Concept6: When difference between CI and SI is given.
How do you write compound interest in Excel?
The general formula for compound interest is: FV = PV(1+r)n, where FV is future value, PV is present value, r is the interest rate per period, and n is the number of compounding periods.
What are the three steps to calculating compound interest?
The steps to calculating compound interest are:
- Multiply the beginning principal amount by one and add the annual interest rate raised to the number of compound periods minus one.
- Subtract the total beginning amount of the loan from the result.
How do you calculate the difference between SI and CI?
Difference Between Simple and Compound Interest
- S.I. = S.I. = (P × R × T) ⁄ 100.
- C.I.= P(1+R/100)t − P.
What is the formula of compound interest with example?
P = principal. r = rate of interest. n = number of times interest is compounded per year. t = time (in years)…Interest Compounded for Different Years.
| Time (in years) | Amount | Interest |
|---|---|---|
| 2 | P ( 1 + R 100 ) 2 | P ( 1 + R 100 ) 2 − P |
| 3 | P ( 1 + R 100 ) 3 | P ( 1 + R 100 ) 3 − P |
What will the sum of Rs 48000?
Answer. Answer: The sum of rupees 48000 was lent out at simple interest and at the end of 2 years and 3 months. Total amount was rupees 55560.
Is the difference between SI and CI for 2 years at 4% per annum is Rupees 1 Find the principal?
The principal Amount is Rs 625.