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msingh

  • one year ago

i didn't understand how it comes , can any body explain, plse go through the following link: http://www.jiskha.com/display.cgi?id=1364807092

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  1. mathslover
    • one year ago
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    @msingh , let us first start with your introduction with compound interest formula. Can you tell me the formula for compound interest Msingh?

  2. msingh
    • one year ago
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    yes, i know theformula for CI

  3. msingh
    • one year ago
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    CI=A+P

  4. mathslover
    • one year ago
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    What is the formula for Amount?

  5. msingh
    • one year ago
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    A=P(1+r/100)

  6. mathslover
    • one year ago
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    \(A_n = P(1+\cfrac{R}{100})^n\)

  7. mathslover
    • one year ago
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    n = no. of times compounded ...

  8. mathslover
    • one year ago
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    Solve A for 8% interest first [n=1 as it is compounded annualy]

  9. mathslover
    • one year ago
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    ^annually

  10. msingh
    • one year ago
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    k

  11. phi
    • one year ago
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    See http://en.wikipedia.org/wiki/Compound_interest#Compound_Interest for a formula

  12. phi
    • one year ago
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    the interest rate for 10% compounded semi-annually (i.e. twice a year) means you use rate= 0.10/2 the number of compoundings in one year is 2, so the formula is P (1+ r/(100*2))^(2*1) or P (1+0.05)^2

  13. phi
    • one year ago
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    the amount of principal plus interest for 8% compounded annually for one year is just P(1+0.08)^1 or P(1+0.08)

  14. phi
    • one year ago
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    if you had compounding monthly, for n years it would be P(1+r/(100*12))^(12*n)

  15. mathslover
    • one year ago
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    @msingh is your doubt clear now?

  16. msingh
    • one year ago
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    yeah, i have solved it ...but one thing i have doubt about this line AFTER 1 YEAR WOULD HAVE BEEN 225 MORE

  17. mathslover
    • one year ago
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    It means you have X apples today then after 1 year you will have 225 + X apples. I just gave you an example.

  18. msingh
    • one year ago
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    k,i got it

  19. mathslover
    • one year ago
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    On the place of apples, we are talking about amount here. Welcome msingh

  20. msingh
    • one year ago
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    @mathslover & @phi thank you so much

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