To calculate the total amount after 1 year with monthly compounding, 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 (the initial amount of money).
• $r$ is the annual interest rate (in decimal form).
• $n$ is the number of times that interest is compounded per year.
• $t$ is the time the money is invested for in years.

Given:

• $P = 50,00,000$ (50 lakhs)
• $r = 10\%$ monthly, which means $r = 10 \times 12 = 120\%$ annually, or 1.20 in decimal.
• $n = 12$ (compounded monthly)
• $t = 1$ year

Now, let's calculate the total amount $A$.

$A = 50,00,000 \times \left(1 + \frac{1.20}{12}\right)^{12 \times 1}$

Let's calculate this step by step.After 1 year, with monthly compounding at a 10% interest rate per month, your total amount will be approximately ₹1,56,92,141.88.

Would you like more details on the calculation, or do you have any other questions?

Here are 5 related questions that might interest you:

1. What would be the amount if the interest was compounded quarterly instead of monthly?
2. How much interest would you earn in total after 1 year?
3. What is the effective annual interest rate in this scenario?
4. How would the final amount change if the interest rate were reduced to 8% per month?
5. How can compound interest impact long-term savings over multiple years?

Tip: Compounding frequency significantly impacts the total interest earned; the more frequent the compounding, the higher the total amount.