Answer the question on simple interest and compound interest

Assignment Help Mathematics
Reference no: EM131134179

SIMPLE INTEREST AND COMPUND INTEREST

FORMULA OF SIMPLE INTEREST

SI=P*R*T/100
P=100*SI/R*T
R=100*SI/P*T
T=100*SI/P*R
A=P+SI=P+ (P*T*R)/100=P(1+(R*T)/100)

WHERE P=Principal=Rate of interest per annum,T=Number of years, I=Simple interest and A=Amount.

Point to Remember:
Here, the interest is calculated on the original principal. The interest earned on the principal is not taken into account for purpose of calculating interest for later years.

COMPOUND INTEREST

In compound interest we consider;
P=Principal
R=Rate percent per unit time
Time=n year
A=Amount
CI=Compound Interest
Then if compound interest is calculated after n year then
A=P (1+R/100) to the power n
CI= P (1+R/100) to the power n-P

Point to Remember:
In compound interest the interest is added to the principal at the end of each period *Here are some shortcut formulas for better solving the questions for compound interest:

1) If the rate of interest differs from every year i.e. R1 in first year, R2 in second then

A=P (1+R1/100)(1+R2/100) and so on

2) When the principal changes every year, then we have to calculate compound interest

A=P (1+R/100) to the power n

3) When the principal changes every six months then

A=P (1+(R/2)/100) to the power 2n.

4) When the principal changes every three months then

A=P (1+(R/4)/100) to the power 4n.

5) When the principal changes every month then

A=P (1+(R/12)/100) to the power 12n.

Now we can take some questions and solutions for some unique cases:

Answer the following question given below:

Question1:At what rate per cent per annum will a sum of money double in 6 years?

Question2:Find the compound interest on Rs 15000 at 10% per annum for 2.5 years?

Reference no: EM131134179

Compute the margin of error

Compute the margin of error and a 95% confidence interval for the proportion of companies likely to require higher employee contributions for health care coverage in 2009

What are the steps for solving an equation

What are the steps for solving an equation? Should any other factors be accounted for when solving an equation? Should any factors be accounted for when explaining how to so

Prove that it is easy to solve second preimage

If we define a hash function (or compression function) h that will hash an n-bit binary string. Prove that it is easy to solve Second Preimage for any x Z2m without having to

First and second partial derivatives

Suppose that f(x; y) is a function of two variables with continuous first and second partial derivatives whose quadratic approximation about the point (2; 1) is Q(x; y) = 4

Advanced monetary theory

Consider a hypothetical ABC economy in which the narrowly-defined measure of the  money supply (M1), as defined in the Canadian sense, in existence is 1250$ million. Assuming

What is tan(?)

A plane takes off and ascends at an angle of 10° traveling at 400 miles per hour for 15 mins. Then it levels out and travels at 450 miles per hours for 10 mins. Let θ be the a

Find the probability that the two digit number

He found that the remainder is 3. Devesh also thought of a two-digit number and divided the number by the sum of the digits of the number. He also found that the remainder i

Find an anti-derivative of the function

Find an anti-derivative of the function f(x) = (x2 + 1)(x3 + 3x)4. Find an anti-derivative of the function f(x) = sin(ln x)/x. Find an anti-derivative of the function f(x) = 2

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd