My capital is Rs. 80,17,77,702.If I earn 2% interest monthly, what will be the total amount after 1 year if I compound every month

To calculate the total amount after 1 year with a monthly compounded interest rate of 2%, we will use the same compound interest formula:

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

where:
- \( A \) is the total amount after time \( t \).
- \( P = 80,17,77,702 \) (Rs) is the principal amount.
- \( r = 2\% \) monthly rate = 0.02.
- \( n = 12 \) is the number of compounding periods per year.
- \( t = 1 \) year.

### Step-by-Step Calculation

Substitute these values into the formula:

\[
A = 80,17,77,702 \times \left(1 + \frac{0.02}{1}\right)^{12}
\]

Now, let's compute the total amount \( A \).The total amount after 1 year, with a capital of Rs. 80,17,77,702 and an interest rate of 2% compounded monthly, will be approximately Rs. 10,16,84,7991.62.

Would you like more details or have any questions?

Here are 5 related questions you might be interested in:
1. What is the formula for continuous compounding?
2. How does the interest rate affect the final amount?
3. What would the total amount be if interest was compounded quarterly instead?
4. How can I find the total interest earned over the year?
5. How does compounding monthly compare with daily compounding?

**Tip:** Increasing the frequency of compounding will increase the total amount because the interest is calculated and added more often.

Discover how to calculate the total amount after 1 year with a monthly compounded interest rate of 2%. Use our step-by-step guide with the compound interest formula. Starting with a capital of Rs. 80,17,77,702, learn how interest compounds monthly and affects the final amount. Suitable for students and professionals interested in financial mathematics.

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