Compound Interest

  • Concept of Compound Interest

    When the interest is calculated for every period on the total previous amount, then the total amount of interest gained on all the periods is called compound interest. Let       Principal = P             Rate of interest = r             No. of years = n             After 1st year, interest                 After 1st year, Amount   […]

  • Examples of Compound Interest

    Example 01: Find the compound amount and compound interest on the principal 20,000 borrowed at 6% compounded annually for 3 years. Solution: Let P = 20000, r = 6%, n = 3 using formula Compound interest Example 02: Find the compound amount, which would be obtained from an interest of Rs.2000 at 6% compounded quarterly […]

  • More Examples of Compound Interest

    To Find Principal We are given n, A, and r We have to find P by the formula Example 01: Find principal, when compound interest for 4 years at 6% is 525. Solution: Let Principal = P, , r = 6%, C.I = 525 We know that To Find Rate When P, n, A are […]