Sunday 21 December 2014

Sample numerical on compound interest

Understand compound interest with the help of a numerical. click on the link to Watch the VIDEO explanation: Watch Video


Numerical
Find the compound interest on Rs. 1500 for 5 years at 9.2% p.a. when C.I. is compounded quarterly.
Solution:
The given data is
The  principal amount P = RS. 1500
the rate of interest R = 9.2% p.a.
The time period = 5 years.
Mass over on Formula to know the formula to calculating the amount. Enter the values to calculating the amount in the boxes.
Solve for the solution 
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Click Solve for the solution
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Taking logs on both sides we get log of A = log of 1500 and 20 log of (1.023)
using the log tables find the log returns of the numbers thousand 500 and 1.023 now enter the correct values in the respective boxes.
Solve for the solution 
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Wrong
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Find the anti log of 3.3721 using anti log tables.
Solve for the solution 
Wrong
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Mouse Over on the formula button to know the formula to calculating the compound interest key in the values for the amount and principal and calculate the values for the compound interest.
Solve for the solution 
Wrong
Try again
That's Right.
You have solved the problem correctly the compound interest is found to be RS. 856.

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