Question

Calculate compound interest on 100 rs. At 5% rate for 1.5 years

Answer 1

Answer:

A = loo(I +5 / loo)^11/2

= loox105 / loox 102.5/loo=

107.625

l07.63 -100 = Rs. 7.63

Answer 2

Answer:

The earnings on this investment will be more with the interest compounded. Let's say the investment Rs. 1,00,000 with a rate of interest of 10% annually, for a term of 5 years. The simple interest earned will be 1,00,000 * 0.10 * 5/100 = 50,000.