interest rate

I do not know if the formulas in the OG review are useful, I do without them indeed.

5,6% every year during 3 years with 1000 at the beginning.
For the second year result you multiply the interest + the total amount invested by 1,056 and to the same for the third year.
T=((1000*1,056)*1,056)*1,056
T=1000*(1.056)^^3

formula is

P( 1+r/100)^t

1000 ( 1 +5.6/100)^3

hence 1000( 1.056)^3

hope it helps..

sudhir3127 wrote:formula is

P( 1+r/100)^t

1000 ( 1 +5.6/100)^3

hence 1000( 1.056)^3

hope it helps..

This formula is correct but thr is one more

P( 1+r/100n)^tn

n for how the interest is compounded
i.e if intrest is compounded semi anually n is 2
if intrest is compounded anually n is 1
n like that.

pls correct me if i am wrong

ur right.. actually i thought it self understood that if its semi annumal the the number of yrs should be doubled. Nonetheless .. good point..

thank u!!