My capital is Rs. 63,21,96,247.If I earn 2% interest monthly, what will be the total amount after 1 year if I compound every month

To find the total amount after 1 year with monthly compounding interest, we can use the compound interest formula:

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

where:
- \( A \) is the total amount after time \( t \).
- \( P \) is the initial principal amount (capital).
- \( r \) is the annual interest rate (as a decimal).
- \( n \) is the number of times interest is compounded per year.
- \( t \) is the time the money is invested for, in years.

### Given:
- \( P = 63,21,96,247 \) (Rs)
- \( r = 2\% \) per month \( = 0.02 \times 12 = 0.24 \) per annum
- \( n = 12 \) (compounding monthly)
- \( t = 1 \) year

Now let's calculate the total amount after 1 year with monthly compounding. Since the interest rate is provided as a monthly rate, we need to convert it to an annual rate for 12 compounding periods.

Let's plug these values into the formula: 

\[
A = 63,21,96,247 \times \left(1 + \frac{0.24}{12}\right)^{12 \times 1}
\]

Let's calculate this step-by-step.The total amount after 1 year, with a capital of Rs. 63,21,96,247 and an interest rate of 2% compounded monthly, will be approximately Rs. 80,17,77,702.81.

Would you like more details or have any questions?

Here are 5 related questions you might be interested in:
1. How does the compounding frequency affect the total amount?
2. What is the difference between simple and compound interest?
3. How can I calculate the interest for different periods (e.g., quarterly, annually)?
4. How would the result change if the interest rate were 3% monthly?
5. What formula would you use if the interest were compounded continuously?

**Tip:** When interest is compounded more frequently, the total amount grows faster due to the effect of earning "interest on interest."

Learn how to calculate the total amount after 1 year with a capital of Rs. 63,21,96,247 and an interest rate of 2% compounded monthly. This problem involves using the compound interest formula and understanding the effects of monthly compounding on the total amount.

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