UPSC Exam  >  UPSC Questions  >  Find compound interest on rupees eight thousa... Start Learning for Free
Find compound interest on rupees eight thousand at fifteen percent per annum for two years four months compounded annually?
Most Upvoted Answer
Find compound interest on rupees eight thousand at fifteen percent per...
Understanding Compound Interest
Compound interest is the interest calculated on the initial principal amount, which also includes all the accumulated interest from previous periods. This results in exponential growth of your investment.
Given Values
- Principal (P): 8000 Rupees
- Rate of Interest (R): 15% per annum
- Time (T): 2 years 4 months
Time Conversion
- Convert 4 months into years: 4/12 = 1/3 years
- Total Time (T) = 2 + 1/3 = 7/3 years
Compound Interest Formula
The formula for compound interest is:
CI = P * (1 + R/n)^(nt) - P
Where:
- CI = Compound Interest
- P = Principal
- R = Rate of interest (in decimal)
- n = Number of times interest applied per time period
- t = Time the money is invested for
Calculation Steps
1. Convert Rate of Interest
- R = 15% = 0.15
2. Use the Formula
- For annual compounding, n = 1.
- Time (t) = 7/3 years.
3. Calculation
- CI = 8000 * (1 + 0.15/1)^(1*(7/3)) - 8000
- CI = 8000 * (1.15)^(7/3) - 8000
4. Calculating (1.15)^(7/3)
- (1.15)^(7/3) ≈ 1.4676
5. Final Calculation
- CI = 8000 * 1.4676 - 8000
- CI ≈ 11740.8 - 8000 ≈ 3740.8 Rupees
Conclusion
The compound interest on 8000 Rupees at 15% per annum for 2 years and 4 months, compounded annually, is approximately 3740.8 Rupees.
Explore Courses for UPSC exam

Top Courses for UPSC

Find compound interest on rupees eight thousand at fifteen percent per annum for two years four months compounded annually?
Question Description
Find compound interest on rupees eight thousand at fifteen percent per annum for two years four months compounded annually? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Find compound interest on rupees eight thousand at fifteen percent per annum for two years four months compounded annually? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find compound interest on rupees eight thousand at fifteen percent per annum for two years four months compounded annually?.
Solutions for Find compound interest on rupees eight thousand at fifteen percent per annum for two years four months compounded annually? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Find compound interest on rupees eight thousand at fifteen percent per annum for two years four months compounded annually? defined & explained in the simplest way possible. Besides giving the explanation of Find compound interest on rupees eight thousand at fifteen percent per annum for two years four months compounded annually?, a detailed solution for Find compound interest on rupees eight thousand at fifteen percent per annum for two years four months compounded annually? has been provided alongside types of Find compound interest on rupees eight thousand at fifteen percent per annum for two years four months compounded annually? theory, EduRev gives you an ample number of questions to practice Find compound interest on rupees eight thousand at fifteen percent per annum for two years four months compounded annually? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev