how to calculate compound interest,? Is there any direct formula to calculate the same?

Answer 1

If the rate of interest is r say 0,06=6% the period n and C your initial capital.
After n periods at rate r your capital would be

C*(1+r)^n

Answer 2

M = P( 1 + i )n
(The n is a exponent not multiplication)

M is the final amount including the principal.

P is the principal amount.

i is the rate of interest per year.

n is the number of years invested.

Applying the Formula

Let's say that I have $1000.00 to invest for 3 years at rate of 5% compound interest.

M = 1000 (1 + 0.05)3 = $1157.62.

You can see that my $1000.00 is worth $1157.
http://math.about.com/od/formulas/a/compound.htm

Answer 3

The general formula is...

Accumulated Value = Beginning Value * [1+(i/n)]^(n*t)

...where "i" is the annual interest rate, "t" is the number of years you're loaning out the money, and "n" is the number of times you compound the interest per year.

In the event you want continuous interest (n basically being infinity), use the formula below...

Accumulated Value = Beginning Value * e^(i*t)

... where "i" and "t" are still the interest rate and # of years, and "e" is just the constant e, approximately 2.71828.

Answer 4

If the time is given for 2 years, principal Rs.100 and rate 5% per annum, you have to find the simple interest on 1st year (1st step)
= (100 * 1 * 5)/100
= 500/100
= Rs.5
Add to the principal and find the amount (2nd step) which here, is Rs 105 and then find the simple interest on that (3rd step):-
= (105 * 1 * 5)/100
= 525/100
= Rs. 5.25
And add Rs 5.25 to 105 which comes Rs.110.25 (Ans.)
Basically, it's a simple interest found with time one after the other.

Answer 5

http://jaw.ii.net/stuff/interest.html go here.. :)