Compound Interest Formulas:
“P” = Compound Principal
“C.I.” = Compound Interest
“R” = Compound Interest rate per annum
“T” = Total time
“A” = compound amount
1. When the Interest is compounded annually , then the Compound interest can be calculated using the formula:
%5ET+-+1%5Cright)&bg=ffffff&fg=000000&s=2 "C.I. = P \left(\left(1+ \dfrac{R}{100}\right)^T - 1\right)")
2. When the interest is compounded semi-annually then , Compound Interest can be calculated using the formula:
%5E%7B2T%7D+-+1%5Cright)&bg=ffffff&fg=000000&s=2 "C.I. = P \left(\left(1+ \dfrac{R}{200}\right)^{2T} - 1\right)")
3. When the interest is compounded monthly then , Compound Interest can be calculated using the formula:
%5E%7B12T%7D+-+1%5Cright)&bg=ffffff&fg=000000&s=2 "C.I. = P \left(\left(1+ \dfrac{R}{1200}\right)^{12T} - 1\right)")
4. When , The time period is not in exact years , For example if it is “Y” years and “M” months , then the Compound Interest can be found using the formula:
+%5Ctimes+%5Cleft(+1%2B+%5Cdfrac%7BM+%5Ctimes+R%7D%7B1200%7D%5Cright)+-+1%5Cright)&bg=ffffff&fg=000000&s=2 "C.I. = P \left(\left(1+ \dfrac{R^Y}{100}\right) \times \left( 1+ \dfrac{M \times R}{1200}\right) - 1\right)")
5. If the rate of interest is not always constant instead different every year , For example: if it is R1 for first year , R2 for second year and R3 for third year , the the compound interest can be found by using the formula:
![C.I. = P \left[ \left(1+\dfrac{R1}{100}\right) \left(1+\dfrac{R2}{100}\right) \left(1+\dfrac{R3}{100}\right) - 1\right]](https://s.wordpress.com/latex.php?latex=C.I.+%3D+P+%5Cleft%5B+%5Cleft(1%2B%5Cdfrac%7BR1%7D%7B100%7D%5Cright)+%5Cleft(1%2B%5Cdfrac%7BR2%7D%7B100%7D%5Cright)+%5Cleft(1%2B%5Cdfrac%7BR3%7D%7B100%7D%5Cright)+-+1%5Cright%5D&bg=ffffff&fg=000000&s=2 "C.I. = P \left[ \left(1+\dfrac{R1}{100}\right) \left(1+\dfrac{R2}{100}\right) \left(1+\dfrac{R3}{100}\right) - 1\right]")
6. Compound Amount Can be calculated by using this formula:
![C.A. = P\left[\left(1+\dfrac{R}{100}\right)^T\right]](https://s.wordpress.com/latex.php?latex=C.A.+%3D+P%5Cleft%5B%5Cleft(1%2B%5Cdfrac%7BR%7D%7B100%7D%5Cright)%5ET%5Cright%5D&bg=ffffff&fg=000000&s=2 "C.A. = P\left[\left(1+\dfrac{R}{100}\right)^T\right]")
7. If the value of an asset grows by “R”% per annum , “V” is the initial value of the asset then after “T” years the value of asset will be:
![=P\left[\left(1+\dfrac{V}{100}\right)^T\right]](https://s.wordpress.com/latex.php?latex=%3DP%5Cleft%5B%5Cleft(1%2B%5Cdfrac%7BV%7D%7B100%7D%5Cright)%5ET%5Cright%5D&bg=ffffff&fg=000000&s=2 "=P\left[\left(1+\dfrac{V}{100}\right)^T\right]")
8. If the value of an asset depreciates by “R”% per annum , “V” is the initial value of the asset then after “T” years the value of asset will be:
![=P\left[\left(1-\dfrac{V}{100}\right)^T\right]](https://s.wordpress.com/latex.php?latex=%3DP%5Cleft%5B%5Cleft(1-%5Cdfrac%7BV%7D%7B100%7D%5Cright)%5ET%5Cright%5D&bg=ffffff&fg=000000&s=2 "=P\left[\left(1-\dfrac{V}{100}\right)^T\right]")
2. When the interest is compounded semi-annually then , Compound Interest can be calculated using the formula:
3. When the interest is compounded monthly then , Compound Interest can be calculated using the formula:
4. When , The time period is not in exact years , For example if it is “Y” years and “M” months , then the Compound Interest can be found using the formula:
5. If the rate of interest is not always constant instead different every year , For example: if it is R1 for first year , R2 for second year and R3 for third year , the the compound interest can be found by using the formula:
6. Compound Amount Can be calculated by using this formula:
7. If the value of an asset grows by “R”% per annum , “V” is the initial value of the asset then after “T” years the value of asset will be:
8. If the value of an asset depreciates by “R”% per annum , “V” is the initial value of the asset then after “T” years the value of asset will be:
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