Podcast
Questions and Answers
If the principal amount is Rs. 10,000, the annual interest rate is 8%, and interest is compounded annually, what will be the total amount after 3 years?
If the principal amount is Rs. 10,000, the annual interest rate is 8%, and interest is compounded annually, what will be the total amount after 3 years?
If the compound interest on a certain amount for 2 years at 10% per annum is Rs. 2,000, what is the principal amount?
If the compound interest on a certain amount for 2 years at 10% per annum is Rs. 2,000, what is the principal amount?
Rajesh invested Rs. 5,000 in a fixed deposit at an annual interest rate of 6%, compounded quarterly. What will be the total amount after 1 year?
Rajesh invested Rs. 5,000 in a fixed deposit at an annual interest rate of 6%, compounded quarterly. What will be the total amount after 1 year?
If the compound interest on a certain sum of money at 12% per annum for 2 years is Rs. 1,440, what is the principal amount?
If the compound interest on a certain sum of money at 12% per annum for 2 years is Rs. 1,440, what is the principal amount?
Signup and view all the answers
A loan of Rs. 20,000 is taken for 4 years with an interest rate of 8%, compounded semi-annually. What is the compound interest accrued over the period?
A loan of Rs. 20,000 is taken for 4 years with an interest rate of 8%, compounded semi-annually. What is the compound interest accrued over the period?
Signup and view all the answers
Study Notes
Compound Interest Calculations
- Principal amount of Rs. 10,000 with an annual interest rate of 8%, compounded annually, results in a total amount of Rs. 12,000 after 3 years.
- Calculation used: Total Amount = Principal × (1 + Rate)^Time = 10,000 × (1 + 0.08)^3
Finding Principal Based on Compound Interest
- Compound interest of Rs. 2,000 accrued over 2 years at 10% per annum implies a principal amount of Rs. 8,264.
- Formula used: CI = P [(1 + r)^t - 1], where CI is compound interest, P is principal, r is the rate (0.10), and t is time (2 years).
Fixed Deposit Investment
- An investment of Rs. 5,000 at an annual interest rate of 6%, compounded quarterly results in a total amount of Rs. 5,348.
- Calculation involves: Total Amount = Principal × (1 + Rate/n)^(n×t), where n is the number of compounding periods per year (4 for quarterly), and t is the time in years (1).
Principal Determination from Compound Interest
- Given a compound interest of Rs. 1,440 over 2 years at 12% per annum, the principal amount is Rs. 10,000.
- Calculated via formula: CI = P [(1 + r)^t - 1].
Compound Interest on a Loan
- A loan of Rs. 20,000 taken for 4 years at an interest rate of 8%, compounded semi-annually leads to a compound interest of Rs. 8,128.
- The interest calculation applies the formula: CI = P [(1 + r/n)^(nt) - 1], with n as 2 for semi-annually.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge of compound interest with these quiz questions. Calculate the total amount after a specified period, determine the annual interest rate, and sharpen your financial math skills.
