Compound Interest calculator

SolutionHelp

1. Principal P = 1000, Rate R = 10, Time T = 2 years, find CI (Interest Compounded Annually)

2. Compound Interest CI = 210, Rate R = 10, Time T = 2 years, find P (Interest Compounded Annually)

3. Compound Interest CI = 210, Principal P = 1000, Time T = 2 years, find R (Interest Compounded Annually)

4. Compound Interest CI = 210, Principal P = 1000, Rate R = 10, find T (Interest Compounded Annually)

Example

1. Principal P = 1000, Rate R = 10, Time T = 2 years, find CI (Interest Compounded Annually)

Solution:
Principal

P=1000 $P=1000$

Rate of interest

R=10% $R=10%$

Time

T=2 $T=2$ year

Find

CI, $CI,$ (Interest Compounded Annually)

We know that

A=P⋅(1+R100n)nT $A=P*(1+R/(100n))^(nT)$

∴A=1000×(1+10100×1)1×2 $:.A=1000 xx (1+10/(100xx1))^(1xx2)$

∴A=1000×(1+0.1)2 $:.A=1000 xx (1+0.1)^(2)$

∴A=1000×1.21 $:.A=1000 xx 1.21$

∴A=1210 $:.A=1210$

Now,

CI=A-P $CI=A-P$

∴CI=1210-1000 $:.CI=1210-1000$

∴CI=210 $:.CI=210$