find the compound interest on Rs 15000 at 3% for 2 years 3 months interest payable yearly
To find the compound interest on Rs 15000 at 3% for 2 years 3 months, with interest payable yearly, you can use the following formula:
A = P(1 + r/n)^(nt)
Where:
A = Final amount after interest
P = Principal amount (initial investment)
r = Annual interest rate (as a decimal)
n = Number of times the interest is compounded per year
t = Time period (in years)
In this case, the principal amount (P) is Rs 15000, the annual interest rate (r) is 3% (or 0.03 as a decimal), the time period (t) is 2 years and 3 months, and the interest is payable yearly.
To calculate the number of times the interest is compounded per year (n), let's first convert the time period into years. 3 months is equal to 3/12 = 0.25 years. So, the total time period (t) is 2 + 0.25 = 2.25 years.
Since the interest is payable yearly, it means the compound interest is compounded once per year. Therefore, n = 1.
Now we can substitute all the values into the formula:
A = 15000(1 + 0.03/1)^(1*2.25)
A = 15000(1 + 0.03)^(2.25)
A = 15000(1.03)^2.25
A = 15000 * 1.066104
A = 15991.56
So, the final amount after 2 years 3 months will be Rs 15991.56.
To calculate the compound interest, we subtract the principal amount from the final amount:
Compound Interest = Final amount - Principal amount
Compound Interest = 15991.56 - 15000
Compound Interest = 991.56
Therefore, the compound interest on Rs 15000 at 3% for 2 years 3 months, with interest payable yearly, is Rs 991.56.
Martin invests 10,000 at 10% per annum
compounded annually in Plan A for 2 years
and the same amount at 10% per annum
compounded half yearly for 2 years in Plan B.
Which of these two plans is a better
investment?