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Home->Aptitude->Compound Interest -> Important Formulas

Compound Interest :-

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IMPORTANT EXAMPLES
::Important Formulas
.

Here Some Basic Formulas/Rules Are given below :-

    Let Principal = P, Rate= R% per annum, Time = n years.
  1. When interest is compounded Annually :
    Amount = P (1 + R/100 )n

  2. When interest is compounded Half-yearly :
    Amount = P (1 + R/2 /100 )2n

  3. When interest is compounded Quarterly :
    Amount = P (1 + R/4 /100 )4n

  4. When interest is compounded Annually but time is in fraction, say 3 2/5 :
    Amount = P (1 + R/100 )3 X (1 + (2/5 R)/100 )

  5. When Rates are different for different years, say R1%, R2%, R3% for lst, 2nd and 3rd year respectively.
    Then, Amount = P (1 + R1/100 ) (1 + R2/100 ) (1 + R3/100 )

  6. Present worth of Rs.x due n years hence is given by :
    Present Worth =        x              
                           (1 + R/100 )n

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