How do you find compound interest short trick?
How do you find compound interest short trick?
- Note: The above formula: A = CI + P will give us total amount.
- Questions 1:Find the amount if Rs 20000 is invested at 10% p.a. for 3 years.
- Solution: Using the formula:A= P [1+ R/100]n
- Question 2: Find the CI, if Rs 1000 was invested for 1.5 years at 20% p.a. compounded half yearly.
How do you calculate CI and SI?
The formulas for both the compound and simple interest are given below….Interest Formulas for SI and CI.
| Formulas for Interests (Simple and Compound) | |
|---|---|
| SI Formula | S.I. = Principal × Rate × Time |
| CI Formula | C.I. = Principal (1 + Rate)Time − Principal |
What is the formula of difference between CI and SI for 3 years?
If the difference between compound and simple interest is of three years than, Difference = 3 x P(R)²/(100)² + P (R/100)³.
What is difference between CI and SI?
The major difference between simple interest and compound interest is that simple interest is based on principal amount whereas compound interest is based on the principal amount and the interest compounded for a cycle of the period.
How do you calculate CI for 3 years?
When the difference between compound and simple interest is asked for three years than the formula will be: 3 x P (R/100)³ + P (R/100)², here also P is the principal amount and R is the rate of interest.
What is CI in compound interest?
CI = A – P Here, A represents the new principal sum or the total amount of money after compounding period. P represents the original amount or initial amount. r is the annual interest rate. n represents the compounding frequency or the number of times interest is compounded in a year.
What is formula for interest?
Use this simple interest calculator to find A, the Final Investment Value, using the simple interest formula: A = P(1 + rt) where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods. Where r is in decimal form; r=R/100; r and t are in the same units of time.
What is principal formula?
The formula for calculating Principal amount would be P = I / (RT) where Interest is Interest Amount, R is Rate of Interest and T is Time Period.
Which is greater SI or CI?
405 we find the value of rate of interest keeping in mind that CI will always be greater than SI.
What is the difference between CI and SI for 2 years?
The difference between SI and CI for 2 years @ 20% per annum is Rs 8.
What is the Si formula?
Simple Interest is calculated using the following formula: SI = P × R × T, where P = Principal, R = Rate of Interest, and T = Time period. Here, the rate is given in percentage (r%) is written as r/100. And the principal is the sum of money that remains constant for every year in the case of simple interest.
What will be the simple interest on Rs 12000 at 10 pa for 3 years?
Now Compound interest = A – P ⇒ Compound interest = Rs. 15972 – Rs. 12000 = Rs. 3972.