Question

Calculating interest when time period is in months

Answer 1

okay...lets go by an example..
Let Principal amount be 1000
Rate of interest Per annum be 10%
and time be 6 months

if you want simple interest -

we know that
SI= PTR/100

where SI = simple interest P= Principal T= Time R = Rate of interest Per annum

SI = {1000*(6/12)*10}/100

= 50


If you want Compound interest then
we know that
CI = P(1+i)^n
=1000(1+(10/100))^(1/2)

in this way we should convert the number of months into single fraction..and continue the sum...For Practical application..post a question and i will visit your profile and answer it