# Solving Compound Interest Problems

Calculate compound interest on an investment or savings.Using the compound interest formula, calculate principal plus interest or principal or rate or time.

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5000 at a certain rate if the compound interest on the same amount for 2 years is Rs. = 1681/1600 → 1 r/100 = 41/40 → r = 2.5 Therefore, SI = 5000* 2 * 2.5/ 100 = Rs.

What is the principal amount and the rate of interest? x Simple interest = x*30/100 = 3x/10 T = 100*SI/PR = 100*3x/10 / x*15 = 2% Alternatively, this can be solved by considering principal amount to be Rs.

Simple interest for (4-2.5) years = 16500 – 15000 Therefore, SI for 1.5 years = Rs. SI for 2.5 years = 1500/1.5 * 2.5 = 2500 Principal amount = 15000 – 2500 = Rs. Rate of Interest = 2500 * 100 / 12500 * 2.5 → R = 8%.

: Amount becomes 15000 in 2.5 years and 16500 in 4 years.

The compound interest and simple interest on a certain sum for 2 years is \$ 1230 and \$ 1200 respectively.

The rate of interest is same for both compound interest and simple interest and it is compounded annually.

Includes compound interest formulas to find principal, interest rates or final investment value including continuous compounding A = Pe^rt.

A = P(1 r/n) I have an investment account that increased from ,000 to ,000 over 30 months.

This page focuses on understanding the formula for compound interest ; if you're interested in taking a deeper dive into how compound interest works and exploring some real world examples, please read our article here.

If you start a bank account with ,000 and your bank compounds the interest quarterly at an interest rate of 8%, how much money do you have at the year's end?

## Comments Solving Compound Interest Problems

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Solution Let P = 20000, r = 6%, n = 3 using formula. A=P1+rn=200001+.063=23820.32. The compound interest =23820.32−20000=3820.32. Example 02…