Example

Calculate compound interest earned on Rs. 750 invested at 12% per annum for 8 years.

S= P(1+r/100)^8

   = 750(1+12/100)^8

    =1857 Rs

Compound interest = 1857 – 750 = 1107 Rs

Calculation using Excel along with formula is given in the following slide

 

 

 

 

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