Compound Interest Tables
Compound interest arises when interest is added to the principal, so that from that moment on, the interest that has been added also itself earns interest. This addition of interest to the principal is called compounding (for example the interest is compounded). A bank account, for example, may have its interest compounded every year: in this case, an account with $1000 initial principal and 20% interest per year would have a balance of $1200 at the end of the first year, $1440 at the end of the second year, and so on.. Source-wikipedia
Formula:
The formula for the compound interest = P(1+r)n.
Description:
R point outs the interest rate.
N point outs the number of times per year.
P point outs the principal value.
Understanding Compound Interest Equation is always challenging for me but thanks to all math help websites to help me out.
Examples:
Let us see some examples of compound interest.
Problem 1:
Find the compound interest on the principal 30,000 borrowed at 7% compounded annually for 4 years.
Solution:
Let, P=30,000.
R= 7%.
N=4.
By, applying the values into the formula = P(1+r)n.
= 30,000 (1+.07)4.
= 39323.8803.
Compound interest = 39323.88-30000
= 9323.88.
Problem 2:
Find the compound interest on the principal 50,000 borrowed at 3% compounded annually for 2 years.
Solution:
Let, P=50,000.
R= 3%.
N=2.
By, applying the values into the formula = P(1+r)n.
= 50,000 (1+.03)2.
= 53045.
Compound interest = 53045-50000
=3045.
Math is widely used in day to day activities watch out for my forthcoming posts on Math Problem Solver and neet mbbs 2013 I am sure they will be helpful.
Problem 3:
Find the compound interest on the principal 20,000 borrowed at 8% compounded annually for 1 year.
Solution:
Let, P=20,000.
R= 8%.
N=1.
By, applying the values into the formula = P(1+r)n.
= 20,000 (1+.08)1.
= 21600.
Compound interest = 21600-20000
=1600.
Problem 4:
Find the compound interest on the principal 60,000 borrowed at 10% compounded annually for 3 years.
Solution:
Let, P=60,000.
R= 3%.
N=2.
By, applying the values into the formula = P(1+r)n.
= 60,000 (1+.03)2.
= 63654.
Compound interest = 63654-60000
=3654.
Compound interest tables:
Let us see the tables of compound interest.
Formula:
The formula for the compound interest = P(1+r)n.
Description:
R point outs the interest rate.
N point outs the number of times per year.
P point outs the principal value.
Understanding Compound Interest Equation is always challenging for me but thanks to all math help websites to help me out.
Examples:
Let us see some examples of compound interest.
Problem 1:
Find the compound interest on the principal 30,000 borrowed at 7% compounded annually for 4 years.
Solution:
Let, P=30,000.
R= 7%.
N=4.
By, applying the values into the formula = P(1+r)n.
= 30,000 (1+.07)4.
= 39323.8803.
Compound interest = 39323.88-30000
= 9323.88.
Problem 2:
Find the compound interest on the principal 50,000 borrowed at 3% compounded annually for 2 years.
Solution:
Let, P=50,000.
R= 3%.
N=2.
By, applying the values into the formula = P(1+r)n.
= 50,000 (1+.03)2.
= 53045.
Compound interest = 53045-50000
=3045.
Math is widely used in day to day activities watch out for my forthcoming posts on Math Problem Solver and neet mbbs 2013 I am sure they will be helpful.
Problem 3:
Find the compound interest on the principal 20,000 borrowed at 8% compounded annually for 1 year.
Solution:
Let, P=20,000.
R= 8%.
N=1.
By, applying the values into the formula = P(1+r)n.
= 20,000 (1+.08)1.
= 21600.
Compound interest = 21600-20000
=1600.
Problem 4:
Find the compound interest on the principal 60,000 borrowed at 10% compounded annually for 3 years.
Solution:
Let, P=60,000.
R= 3%.
N=2.
By, applying the values into the formula = P(1+r)n.
= 60,000 (1+.03)2.
= 63654.
Compound interest = 63654-60000
=3654.
Compound interest tables:
Let us see the tables of compound interest.
These kinds of tables are used to looking compound interest for various factors.
Description:
I indicate the effective interest rate.
N indicates the number of interest periods.
P indicates the principle amount.
F indicates the future amount.
A indicates the end of period amount.
G indicates the uniform period by period increment cash receipts.
Description:
I indicate the effective interest rate.
N indicates the number of interest periods.
P indicates the principle amount.
F indicates the future amount.
A indicates the end of period amount.
G indicates the uniform period by period increment cash receipts.