Math Problem Statement
My capital is Rs. 4,92,48,664. If I earn 10% interest every month, what will be my capital after 1 year if I compound every month
Solution
To find your capital after 1 year with a 10% monthly interest rate compounded monthly, we can use the compound interest formula:
Where:
- is the amount after time .
- is the initial principal (Rs. 4,92,48,664).
- is the annual interest rate (in decimal form).
- is the number of times interest is compounded per year.
- is the time in years.
For this problem:
- Monthly interest rate is 10%, so annually.
- (compounded monthly).
- year.
Now, let's calculate the final amount .After 1 year, with a 10% monthly interest rate compounded monthly, your capital will be approximately Rs. 15,45,63,405.
Would you like more details or have any questions about this calculation?
Here are some related questions:
- What would your capital be after 6 months with the same interest rate?
- How would the capital change if the interest rate were compounded quarterly instead?
- What is the difference in total interest earned between compounding monthly and compounding annually?
- How much interest would you earn in a year without compounding (simple interest)?
- What would be the total amount after 2 years with the same conditions?
Tip: Compounding more frequently generally results in higher returns due to interest on interest being calculated more often.
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Math Problem Analysis
Mathematical Concepts
Compound Interest
Exponential Growth
Formulas
Compound Interest Formula
Theorems
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Suitable Grade Level
Grades 9-12