My capital is Rs. 1,52,24,08,220. If I earn 10% interest every month, what will be my capital after 1 year if I compound every month

To calculate the capital after 1 year with monthly compounding at a 10% monthly interest rate, you can use the formula for compound interest:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- \( A \) is the amount of money accumulated after \( n \) years, including interest.
- \( P \) is the principal amount (the initial capital).
- \( r \) is the annual interest rate (as a decimal).
- \( n \) is the number of times that interest is compounded per year.
- \( t \) is the time the money is invested for, in years.

In your case:
- \( P = 1,52,24,08,220 \) Rs
- \( r = 10\% \) per month or \( r = 0.10 \times 12 = 1.2 \) annually
- \( n = 12 \) (since interest is compounded monthly)
- \( t = 1 \) year

However, since the interest rate given is already on a monthly basis (10% per month), the correct formula to use is:

\[
A = P \left(1 + r\right)^{n}
\]

Where:
- \( r = 0.10 \) (since it's a monthly rate)
- \( n = 12 \) (number of months)

Now, let's calculate it:

\[
A = 1,52,24,08,220 \times (1 + 0.10)^{12}
\]After 1 year, with a 10% monthly interest rate compounded monthly, your capital would grow to approximately Rs. 47,77,96,91,58.60.

Would you like more details or have any questions? Here are some related questions you might find interesting:

1. How does the final amount change if the interest rate is compounded quarterly instead of monthly?
2. What would be the total interest earned after one year?
3. How does the capital grow if the interest rate is reduced to 5% per month?
4. What happens to the capital if it is compounded daily instead of monthly?
5. How can you calculate the effective annual rate (EAR) from a monthly interest rate?

**Tip:** Compound interest grows exponentially, meaning the longer you invest or the more frequently interest is compounded, the greater your capital will become.

Learn how to calculate the growth of capital with a 10% monthly compound interest rate over one year. Understand the compound interest formula and its application in financial calculations. Example: If your initial capital is Rs. 1,52,24,08,220 and you earn 10% interest compounded monthly, your capital after one year will be approximately Rs. 47,77,96,91,58.60.

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