Calculating interest when time period is in months
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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
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
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