calculation of compound interest?

Question

for Rs. 100000 for 1 year interest rate is 12%
then how much will be the compound interest after 5 years ?
please also give the monthly compound interest rate calculation
how much do i get monthly interest for the 5 years.?

Answer 1

(m)

Principle or Sum [P] = 100000
Rate % per Annum [R= 12 %
Time Years [n] = 5 yrs
Compound Interest [C.I.] = 76234.17

Formula's:

Total Amount = Principle + CI (Compound Interest)

a. Formula for Interest Compounded Annually
Total Amount = P(1+(R/100))n

b. Formula for Interest Compounded Half Yearly
Total Amount = P(1+(R/200))2n

c. Formulae for Interest Compounded Quarterly
Total Amount = P(1+(R/400))4n

d. Formulae for Interest Compounded Annually with fractional years (e.g 2.5 years)
Total Amount = P(1+(R/100))a×(1+(bR/100))
here if year is 2.5 then a =2 and b=5

e. With different interest rates for different years
Say x% for year 1, y% for year2, z% for year3
Total Amount = P(1+(x/100))*(1+(y/100))*(1+(z/100))


where CI = Compound Interest, P = Principle or Sum of amount, R = % Rate per annum, n = Time Span in years

Answer 2

Moneychimp Compound Interest Calculator

Answer 3

Amount = Principal x {1 + (rate /100)} ^ time
in your case
A = 100000 ( 1 + 0.12 )^ 5
= 100000 x 1.12^5
Compound Interest = A - P
for the second part of your question could you clarify if you mean whether the principal is compounded monthly?

Answer 4

CI = P(1+r\100)^n - P

p = principal = 100000

n = time = 5

r = rate = 12

put the value in formula

CI = 100000(1+5/100)^5 - 100000

CI = 100000(21/20)5 - 100000
CI = 1000000(1.276) -100000
CI = 127600- 100000
CI = 27600 ans

Answer 5

You can try the following websites where ready calculators and formulas are available for calculating compound interst.

http://www.moneychimp.com/calculator/compound_interest_calculator.htm
http://en.wikipedia.org/wiki/Compound_annual_growth_rate
http://www.texasstatebank.com/tools/compound-interest.html

If useful give 10 points.
http://www.1728.com/compint.htm

Answer 6

compound Formula

A = P(1 + r)n

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Let

100000 = Principal

12% = rate

5 = numbers of years

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A = P(1 + r)n

A = 100000(1 + 0.12)

A = 100000(1.12)^5

A = 100000(1.762341683)

A = 176234.1683

Answer 7

i = 0.12/12 =.01 monthly
A = P(1+i)^n
100,000(1.01)^60 = 181,669.67
I = i*A = iP(1+i)^(n-1) will give the interest paid each month.
Total interest for the 5 years is 81,669.67

Answer 8

Good grief, you're not asking much are you! My advice...get an accountant lol.