My capital is 50 lakhs. If I earn 10% interest every month, what will be my capital after 8 years if I compound every month

To calculate the future value of your capital when compounding monthly, we 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 (initial capital), which is 50 lakhs (5,000,000).
- \(r\) is the annual interest rate (in decimal form). Since you're earning 10% monthly, the annual interest rate would be \(10\% \times 12 = 120\%\), so \(r = 1.20\).
- \(n\) is the number of times that interest is compounded per year. Here, \(n = 12\) (monthly compounding).
- \(t\) is the time the money is invested for, in years, which is 8 years.

Let's calculate the future value.After 8 years, with a monthly compounded interest rate of 10%, your capital would grow to approximately **₹470,61,71,826** (about 470.6 crores).

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

1. How would the capital differ if the interest rate was compounded quarterly instead of monthly?
2. What would be the future value if the interest rate was 8% monthly instead of 10%?
3. How does the length of the investment period affect the final amount?
4. What is the formula for continuous compounding, and how would the result change with continuous compounding?
5. Can you explain how the concept of compounding applies to real-world investment scenarios?

**Tip:** When dealing with high-interest rates, frequent compounding significantly boosts the growth of your investment over time.

Learn how to calculate compound interest with monthly compounding using the formula A = P (1 + r/n)^(nt). Given an initial capital of ₹50 lakhs earning 10% interest monthly over 8 years, find out how your capital grows to approximately ₹470,61,71,826. Explore variations in compounding periods and interest rates.

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