ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The formula for compounded interest is based on the principal, P, the nominal interest rate, i, and the number of compounding periods. The formula you would use to calculate the total interest if it is compounded is P[(1+i)^n-1].

Detailed explanation-2: -Therefore, a 10% interest rate compounding semi-annually is equivalent to a 10.25% interest rate compounding annually. The interest rates of savings accounts and Certificate of Deposits (CD) tend to compound annually. Mortgage loans, home equity loans, and credit card accounts usually compound monthly.

Detailed explanation-3: -Compound interest will be calculated by C.I = [P × (1+R100)n]-P. C.I = [15000 × (1+5100)5]-15000. C.I = [15000 × (1+120)5]-15000.

Detailed explanation-4: -MV is the Maturity Value. P is the principal amount. r is the rate of interest applicable. n is the number of compounding. Depending on the time period of deposit, interest is added to the principal amount. read more intervals since the time of the date of deposit till maturity.