Answer the question on simple interest and compound interest
Course:- Mathematics
Reference No.:- EM131134179

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Mathematics



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.


In compound interest we consider;
R=Rate percent per unit time
Time=n year
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?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Mathematics) Materials
Tidewater Home Health Care, Inc., has a bond issue outstanding with eight years remaining to maturity, a coupon rate of 10 percent with interest paid annually, and a par val
Determine the dimensions of a rectangular solid (with a square base) with maximum volume if its surface area is 150 square inches. Show your work, and justify your answer.
Description of Probability : Random Selection, Suppose there are two vendors and each provides 50% of the items. The lifetime (in days) of an item from the first vendor is Exp
The Jurassic Zoo charges $28.00 for each adult admission and $12.00 for each child. The total bill for 254 people a school trip was $3865.00. How many adults and how many ch
The coarseness of the sand is such that it forms a pile in the shape of a cone with the radius of the base always 1/2 the height. How fast is the height increasing when the
Find the directional derivative of the function f at the point (2, 1) in the direction of the vector v→ = 3i→ + 4j→. What is the maximum value of the directional derivative of
Discuss why productivity is important, particularly in a healthcare organization. How do staffing models and labor optimization algorithms contribute towards productivity? D
Assuming both retire at 70, and that the interest rate both get on their investments is 10% (compounded annually) who has the most money in their account at age 70? Explain