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msingh
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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
 one year ago
 one year ago
msingh Group Title
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
 one year ago
 one year ago

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mathslover Group TitleBest ResponseYou've already chosen the best response.2
@msingh , let us first start with your introduction with compound interest formula. Can you tell me the formula for compound interest Msingh?
 one year ago

msingh Group TitleBest ResponseYou've already chosen the best response.0
yes, i know theformula for CI
 one year ago

mathslover Group TitleBest ResponseYou've already chosen the best response.2
What is the formula for Amount?
 one year ago

msingh Group TitleBest ResponseYou've already chosen the best response.0
A=P(1+r/100)
 one year ago

mathslover Group TitleBest ResponseYou've already chosen the best response.2
\(A_n = P(1+\cfrac{R}{100})^n\)
 one year ago

mathslover Group TitleBest ResponseYou've already chosen the best response.2
n = no. of times compounded ...
 one year ago

mathslover Group TitleBest ResponseYou've already chosen the best response.2
Solve A for 8% interest first [n=1 as it is compounded annualy]
 one year ago

mathslover Group TitleBest ResponseYou've already chosen the best response.2
^annually
 one year ago

phi Group TitleBest ResponseYou've already chosen the best response.1
See http://en.wikipedia.org/wiki/Compound_interest#Compound_Interest for a formula
 one year ago

phi Group TitleBest ResponseYou've already chosen the best response.1
the interest rate for 10% compounded semiannually (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
 one year ago

phi Group TitleBest ResponseYou've already chosen the best response.1
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)
 one year ago

phi Group TitleBest ResponseYou've already chosen the best response.1
if you had compounding monthly, for n years it would be P(1+r/(100*12))^(12*n)
 one year ago

mathslover Group TitleBest ResponseYou've already chosen the best response.2
@msingh is your doubt clear now?
 one year ago

msingh Group TitleBest ResponseYou've already chosen the best response.0
yeah, i have solved it ...but one thing i have doubt about this line AFTER 1 YEAR WOULD HAVE BEEN 225 MORE
 one year ago

mathslover Group TitleBest ResponseYou've already chosen the best response.2
It means you have X apples today then after 1 year you will have 225 + X apples. I just gave you an example.
 one year ago

mathslover Group TitleBest ResponseYou've already chosen the best response.2
On the place of apples, we are talking about amount here. Welcome msingh
 one year ago

msingh Group TitleBest ResponseYou've already chosen the best response.0
@mathslover & @phi thank you so much
 one year ago
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