Compound Interest

• Let Principal = P, Rate = R% per annum, Time = n years.
  
  
• When interest is compound Annually:
  
  

  Amount = P		1 +	R		n
  			100

• When interest is compounded Half-yearly:
  
  

  Amount = P		1 +	(R/2)		2n
  			100

• When interest is compounded Quarterly :
  
  

  Amount = P		1 +	(R/4)		4n
  			100

• When Rates are different for different years, say R₁%, R₂%, R₃% for
   1^st, 2^ndand 3^rd year respectively.
  
  
  
  

  Then, Amount = P

  1 +

  R1

  1 +

  R2

  1 +

  R3

  .

  100

  100

  100

  
  
• Present worth of Rs. x due n years hence is given by :
  
  

  Present Worth =	x	.
  	1 + R 100