calculate interest at 24% for a principal of 47 lakhs. . Assume we have given this 47 lakhs on April 1989. Calculate monthly interest for 01.April.1989 to 31.Aug.2024 Calculate interest using Compound interest method

To calculate compound interest on a principal amount of ₹47,00,000 at an annual interest rate of 24%, we will use the compound interest formula:

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

Where:
- \( A \) is the final amount (principal + interest).
- \( P \) is the principal amount (₹47,00,000).
- \( r \) is the annual interest rate (24% or 0.24).
- \( n \) is the number of times the interest is compounded per year (we will assume monthly compounding, so \( n = 12 \)).
- \( t \) is the time in years between the start date and end date.

### Step-by-Step Calculation:
1. **Determine the time in years:**
   From April 1, 1989, to August 31, 2024:
   - Years: 2024 - 1989 = 35 years.
   - Months: April to August adds 5 months.
   
   So, the total time \( t \) = 35 years and 5 months = \( 35 + \frac{5}{12} \) years.

2. **Use the compound interest formula:**
   Substituting the values into the formula:

\[
A = 47,00,000 \left( 1 + \frac{0.24}{12} \right)^{12 \cdot \left( 35 + \frac{5}{12} \right)}
\]

Now, let's compute this step-by-step.The final amount, after compounding the interest monthly at a rate of 24% per annum on a principal of ₹47,00,000 from April 1, 1989, to August 31, 2024, is approximately ₹21,240,799,366.23.

### To calculate the interest alone:
\[
\text{Interest} = A - P = 21,240,799,366.23 - 47,00,000 = 21,235,099,366.23
\]

Thus, the total compound interest accrued over this period is ₹21,235,099,366.23.

Would you like a breakdown of the interest per month or further details?

### Related Questions:
1. How is the compounding frequency chosen in practical scenarios?
2. What is the difference between compound and simple interest?
3. How would the result change with a different compounding period (e.g., yearly)?
4. Can we calculate effective interest rates from nominal rates?
5. What impact does inflation have on the real value of this interest?

**Tip:** Compounding more frequently (e.g., monthly or daily) results in more interest compared to yearly compounding at the same rate.

calculate interest at 24% for a principal of 47 lakhs. Assume we have given this 47 lakhs on April 1989. Calculate monthly interest for 01.April.1989 to 31.Aug.2024. Calculate interest using Compound interest method

Learn how to calculate compound interest on ₹47,00,000 at an annual interest rate of 24%, compounded monthly, from April 1989 to August 2024. This solution includes a detailed breakdown of the interest formula, leading to a total accrued interest of ₹21,235,099,366.23.

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