How much will ₹ 50000 amount to in 3 years compounded yearly if the rates?
Once you have these figures, you can quickly understand how much you will earn from an investment that uses the power of compounding interest. Show
The compound interest formula is: The values are: Let’s look at how you can calculate compound interest using the given formula. Say you have invested INR 10,000 for 10 years. You earn 5% interest on your investment and your interest gets compounded annually. So, in the first year you earn INR 500 on your investment of INR 10,000. In the second year, your principal amount changes to INR 10,500. You now earn INR 525 as interest on your new principal amount, so you now have a total of 10,500 + 525 = 11,025. If you use the formula above, you can quickly understand how much you will have at the end of ten years. P = INR 10,000 A = 10000 (1 + 0.05/1)10 = INR 16,288.95 The interest charged on a loan or deposit is known as compound interest. It is the most often utilised idea in our everyday lives. Compound interest is calculated using both the principal and the interest earned over time. It is given that Principal (P) = ₹ 50000 Rate of interest (r) = 8% p.a. = 4% semi-annually Period (n) = 1 ½ years = 3 semi-annually We know that \text { Amount }=\mathrm{P}(1+\mathrm{r} / 100)^{\mathrm{n}} Substituting the values = 50000 (1+4 / 100)^{3} By further calculation =50000(26 / 25)^{3} = 50000 × 26/25 × 26/25 × 26/25 = ₹ 56243.20 Here Compound Interest = A – P Substituting the values = 56243.20 – 50000 = ₹ 6243.20 Interest for the first year = `["P" xx "R" xx "T"]/100` = `[ 50,000 xx 6 xx 1 ]/100` Interest for the second year = `["P" xx "R" xx "T"]/100` = `[ 53,000 xx 8 xx 1]/100` Amount for the second year = Rs. 53,000 + Rs. 4,240 = Rs. 57,240 Interest for the third year = `["P" xx "R" xx "T"]/100` = `[57,240 xx 10 xx 1]/100` = Rs. 5,724 Amount for the third year = Rs. 57,240 + Rs. 5,724 = Rs. 62,964 A fixed deposit (FD) is a financial instrument that majorly all banks and non-banking financial companies (NBFC) provide. Under a fixed deposit comes with a flexible duration, guaranteed, and predetermined rate of interest. Irrespective of the market fluctuations you will always earn the predetermined interest on your FD investment. You can invest for a tenure ranging from 7 days to 10 years. The more the deposit amount for a longer period, the higher will be the applicable interest rate and interest earned due to the power of compounding. What is the FD Calculator?The fixed deposit calculator helps an investor estimate the FD maturity amount for a fixed tenure. With the use of an FD calculator, you can estimate the interest income before making an investment. The FD calculator takes the investment amount, prevailing interest rate, and tenure as an input. It provides the wealth gained and maturity amount as the output. How to use Scripbox’s Fixed Deposit FD Calculator?It is very important for an investor to know the expected amount in advance and before making the investment. This will ensure whether the selected investment option will serve the financial goal of the investor at the maturity or not. Investment Amount ApproachYou need to follow the following steps to get the maturity amount and an estimate of interest earning:
On the basis of the above details provided the online FD calculator calculates the following
Target Amount ApproachBy using the target amount approach you can estimate the investment amount you need to achieve the target maturity amount and the wealth i.e interest. All you need to do is provide the details of your investment goal as mentioned in the following steps:
On the basis of the above details, the online FD calculator will provide you with how much you need to invest to receive the desired maturity amount. It also estimates the interest-earning on the investment amount. Why should you use Scripbox’s FD Calculator?Investing in any scheme is a decision that you must make only after a thorough analysis and research. The investment scheme must fulfill your investment objectives. You must use a calculator to know whether the investment scheme fulfills your investment goals or not. This way you will not only make a well-informed decision but also save yourself from any disappointments and surprises. Once you have the financial goal in his mind, he can also decide on which investment option to select Well, Scripbox provides a simple yet effective online FD calculator to help you in your investment decision.
Fixed Deposit Calculation FormulaThe bank interest rate on the bank fixed deposit is pre-determined at the time of making the investment. Moreover, it remains constant over the period of investment. The following are a couple of factors that affect the fixed deposit interest rates:
Simple Interest on Fixed DepositSimple interest is the interest earned on the principal amount invested at the predetermined interest rate during the investment tenure. Example on Simple InterestMr. Arun invested Rs 100,000 for 10 years at an interest rate of 5% per annum. Compound Interest on Fixed DepositCompound interest is the interest earned on the principal amount invested and the interest earned. The interest rate is raised to the number of periods (years) for which the interest will be compounded and multiplied to the principal amount invested. Example on Compound InterestMr. Arun invested Rs 1,00,000 for 10 years at an interest rate of 5% per annum compounded quarterly Frequently Asked QuestionsWhat is the maximum and minimum amount to invest in a fixed deposit? The maximum and minimum amount to invest in a fixed deposit varies from one bank to another. However, if an investor wishes to invest above Rs 1 crore, he may ask for a customised interest rate from the bank. What is the minimum tenure for which one can invest in fixed deposits? The customers can choose to invest their money for a minimum period of 7 days up to a maximum tenure of 10 years. Are there any additional benefits of investing in the case of senior citizens? Investments done by them are offered a higher rate of returns than whatever is fixed for a regular fixed deposit. What is the fixed deposit interest rate for senior citizens? The rate of interest for senior citizens is higher than the interest rate for other citizens. The fixed deposit interest rate ranges from 9% to 9.5% depending on the tenure of a fixed deposit account. Is interest earned on a fixed deposit taxable? Yes, the interest amount on a fixed deposit is taxable at the applicable slab rates. TDS @ 10% is deducted if the interest amount is greater than Rs 10,000. Is fixed deposit a better investment? A fixed deposit provides interest higher than the interest on the savings account balance. So, it is better to invest in an FD than your money lying in a savings account. However, an investor must also evaluate other investment options that provide a return higher than a fixed deposit. These other investment options are debt mutual funds, tax saving mutual funds. These options provide returns higher than fixed deposits but also comes along with a market fluctuation risk. How much will ₹ 50 000 amount to in 3 years compounded yearly if the rates for the successive years are 6% 8% and 10% respectively?50,000 in 3 years, compounded yearly, if the rates for the successive years are 6%, 8% and 10% respectively will amount to Rs. 62,964. So, the correct answer is Rs. 62,964”.
What will be the compound interest on a sum of rupees 50000 after 3 years at the rate of 12% per annum?Solution: The compound interest is Rs. 20,246.4.
How much will Rs 50000 to 2 years at 5% interest compounded annually?50000 ( 105 / 100 ) 2. 50000 × 21 / 20 × 21 / 20. 500 × 21 / 2 × 21 / 2. 441 + 500 / 4 = 220500 / 4.
What is the compound interest on Rs 5000 for 3 years at 6% compounded annually?Compounded monthly, is the same as he got at 6% interest per annum for 3 years. Compounded annually. Therefore, compound interest is 955.08.
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