Math Problem Statement
My capital is Rs. 15,45,63,405. If I earn 10% interest every month, what will be my capital after 1 year if I compound every month
Solution
To calculate your capital after 1 year with a 10% monthly interest rate, compounded monthly, we'll use the compound interest formula again:
Where:
- (initial capital in Rs)
- (annual interest rate)
- (compounded monthly)
- year
Let's calculate the final amount .After 1 year, with a 10% monthly interest rate compounded monthly, your capital will be approximately Rs. 48,50,86,176.
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 this new capital amount?
- How much interest would you earn in the first month alone?
- What would be the total interest earned after 1 year?
- How would your capital change if the interest rate was compounded daily instead of monthly?
- What would be your capital after 2 years under the same conditions?
Tip: The power of compounding is significant, especially with high monthly interest rates. It's essential to understand how it scales over time.
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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