Compound Interest Tricks for all exams 9-7-2016

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What is Compound Interest:-

Compound interest is interest figured on the underlying main furthermore on the aggregated enthusiasm of past times of a store or advance. Accumulating funds can be considered as “enthusiasm on interest,” and will make a store or advance develop at a quicker rate than straightforward interest, which is interest figured just on the primary sum. The rate at which accumulating funds collects relies on upon the recurrence of intensifying; the higher the quantity of exacerbating periods, the more prominent the accruing funds. Therefore, the measure of accumulated dividends collected on $100 intensified at 10% every year will be lower than that on $100 aggravated at 5% semi-yearly over the same day and age. Progressive accrual is otherwise called exacerbating.

चक्रवृद्धि ब्याज इसके अलावा एक दुकान या अग्रिम के पिछले बार के एकत्रित उत्साह पर अंतर्निहित मुख्य पर लगा रुचि है। जमते धन के रूप में माना जा सकता है “ब्याज पर उत्साह,” और एक दुकान या अग्रिम सीधा ब्याज की तुलना में एक तेज दर है, जो है हित सिर्फ प्राथमिक योग पर लगा पर विकसित कर देगा। जिस दर पर जमते धन इकट्ठा तेज की पुनरावृत्ति पर पर निर्भर करता है; उच्च और बदतर हो गयी अवधि की मात्रा अधिक प्रमुख एकत्रित धन। इसलिए, $ 100 पर एकत्र संचित लाभांश के उपाय 10% पर तेज हर साल $ 100 अर्ध-वार्षिक उसी दिन और आयु से अधिक 5% पर बढ़ पर उस से भी कम हो जाएगा। प्रगतिशील उपार्जन अन्यथा exacerbating कहा जाता है।

Annual compound interest formula

The equation for annual compound interest formula is A = P (1 + r/n) ^ nt

वार्षिक चक्रवृद्धि ब्याज सूत्र के लिए समीकरण है= P (1 + r/n) ^ nt


A = the future estimation of the speculation/credit, including interest (क्रेडिट के भविष्य के आकलन, ब्याज सहित)

P = the central speculation sum (the underlying store or credit sum) (केंद्रीय राशि (अंतर्निहित कहानी या क्रेडिट योग)

r = the yearly loan cost (decimal) (वार्षिक ऋण लागत (दशमलव))

n = the quantity of times that interest is intensified every year (समय की मात्रा है कि ब्याज हर साल तेज है)

t = the quantity of years the cash is contributed or acquired (वर्ष नकदी की मात्रा योगदान या अधिग्रहण कर लिया है)

1.Let Principal = P, Rate = R% per annum, Time = n years.

2.When interest is compound Annually:

Amount = P (1 + R/100)  n

3.When interest is compound Half-yearly:

  Amount = P 1 + (R/2) 2n

4.When interest is compound Quarterly:

Amount = P 1 + (R/4) 4n

5.When interest is compounded Annually but time is in division, say 3 years.

Amount = P 1 + R 3 x 1 + R
100 100

6.When Rates are distinctive for different years, say R1%, R2%, R3% for first, second and third year respectively.

Then, Amount = P 1 + R1 1 + R2 1 + R3 .
100 100 100

7.Present worth of Rs. x due n years henceforth is given by:

Present Worth = x .
1 + R

Formulas where n = 1 (compound once per period or unit t)

•Calculate Accrued Amount (Principal + Interest) A =

P(1 + r)t

•Calculate Principal Amount, explain for P

P = A/(1 + r)t

•Calculate rate of enthusiasm for decimal, explain for r

r = (A/P)1/t – 1

•Calculate rate of enthusiasm for percent

R =  r * 100

•Calculate time, explain for t

t = t = ln(A/P)/ln(1 + r) = [ ln(A) – ln(P) ]/ln(1 + r)

Consistent Compounding Formulas (n → ∞)

•Calculate Accrued Amount (Principal + Interest)

A = Pert

•Calculate Principal Amount, understand for P

P = A/ert

•Calculate rate of enthusiasm for decimal, understand for r

r = ln(A/P)/t

•Calculate rate of enthusiasm for percent

R = r * 100

•Calculate time, understand for t

t = ln(A/P)/r


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