Question

How much amount is required to be invested every year so as to accumulate Rs.3,00,000 at the end of 10 years, if interest is compounded annually at 10% ? ​

Answer 1

Answer:

For a daily interest rate, divide the annual rate by 360 (or 365, depending on your bank).

...

Monthly Interest Rate Calculation Example

Convert the annual rate from a percent to a decimal by dividing by 100: 10/100 = 0.10.

Now divide that number by 12 to get the monthly interest rate in decimal form: 0.10/12 = 0.0083.

Answer 2

The correct answer is 115662.98.

Given: Time = 10 years

Rate = 10%.

Compound Interest = Rs 300000.

To Find: Principle.

Solution:

$A=P(1+\frac{R}{n} )^{nt}$

300000 = $P(1+\frac{10}{100} )^{10}$

$\frac{1}{P}$ = $\frac{(\frac{11}{10}) ^{10}}{300000}$

$\frac{1}{P}$ = $\frac{11^{10} }{3*10^{15} }$

$\frac{1}{P}$ = 8.6458

P = 115662.98

Hence, the principle is Rs 115662.98.

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