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6. Present value using Compound Interest example ( Enter your problem )
  1. Find Future value (FV) Example
  2. Find Present value (C) Example
  3. Find Interest Rate (i) Example
  4. Find Time (n) Example
Other related methods
  1. Future value using Simple Interest
  2. Future value using Compound Interest
  3. Future value of Annuity
  4. Future value of Annuity Due
  5. Present value using Simple Interest
  6. Present value using Compound Interest
  7. Present value of Annuity
  8. Present value of Annuity Due
  9. Contineous Compounding

3. Find Interest Rate (i) Example
(Previous example)
7. Present value of Annuity
(Next method)

4. Find Time (n) Example





1. Find Time n = ?
Present value C = 1000, Interest Rate i = 10%, Future value FV = 1331,
Interest compounded = Year (1/year)
for Present value using Compound Interest method


Solution:
`C=1000`

`i=10%=0.1` per year (Interest rate)

`FV=1331` (Future value)

Now, Future value (Compound Interest) formula is
`FV=C*(1+i)^n`

`:.1331=1000*(1+0.1)^n`

`:.(1331)/(1000)=(1.1)^n`

`:.1.33=(1.1)^n`

`:.1.1^n=1.33`

taking natural log on both the sides
`:.ln(1.1^n)=ln(1.33)`

`:.n*ln(1.1)=ln(1.33)`

`:.n=ln(1.33)/ln(1.1)`

`:.n=(0.29)/(0.1)`

`:.n=3` year
2. Find Time n = ?
Present value C = 5000, Interest Rate i = 10%, Future value FV = 6050,
Interest compounded = Year (1/year)
for Present value using Compound Interest method


Solution:
`C=5000`

`i=10%=0.1` per year (Interest rate)

`FV=6050` (Future value)

Now, Future value (Compound Interest) formula is
`FV=C*(1+i)^n`

`:.6050=5000*(1+0.1)^n`

`:.(6050)/(5000)=(1.1)^n`

`:.1.21=(1.1)^n`

`:.1.1^n=1.21`

taking natural log on both the sides
`:.ln(1.1^n)=ln(1.21)`

`:.n*ln(1.1)=ln(1.21)`

`:.n=ln(1.21)/ln(1.1)`

`:.n=(0.19)/(0.1)`

`:.n=2` year


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3. Find Interest Rate (i) Example
(Previous example)
7. Present value of Annuity
(Next method)





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