Monday, November 14, 2016

on compound interest comparison to simple interest

In how much time will Rs 10000 amounts to Rs. 10,600:00 with simple interest .rate of interest is 6%. With the same time period  find the compound interest rate.


amount in Rs. year interest rate= 6/100=0.06 interest total
10000 after 1st year 0.06 600 10600
10000 after 2 year 0.06 600 10600
10000 after 3 year 0.06 600 10600
1800
After three years Rs 10000.00 will become Rs.11800 .00. Total interest received is Rs. 1800.00
While calculating with compound interest
amount in Rs. year interest rate= 6/100=0.06 interest total
10000 after 1st year 0.06 600 10600
10600 after 2 year 0.06 636 11236
11236 after 2 year 0.06 674.16 11910.16
With compound interest rate , interest received  Rs. 1910.16

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