Compound Interest

congeniality And Concept If somebody save in bank and bank give

flower P% one year, by the end of per annum the money which deposited in bank will increase with its flower. If flower money is not taken hereinafter the saving flower money enhanced direct to saving from the beginning and become n new saving amount to a period of/to next flower, referred as by such flower of compound interest

Example :

Capital of equal to Rp 4.000.000,- profited by on the basis of compound interest 4%per year. How big that capital by the end of year of third

Reply

compound interest Calculation

For example. Capital as much M saved in bank with compound interest i = P% per a period of/to flower, each;every period will increase to become the following

Mn = M(1 + i)n

Boldness Mn = Capital after n time / final value M = Capital of early i = flower percentage n = sum up a period of/to flower

Follow the example of to count final value of capital Capital of equal to Rp 200.000,-

kept by bank with compound interest 4,5% one year. Whether/What capital after 5 year

Reply Is known M = 200.000; i = 0,045; n = 5

M5 = 200.000 (1 + 0,045)5

= 200.000 (1,045)5

= 200.000 (1,246181938)= 249.236,39

Become, final value after 5 year become

Rp 249.236,39

Counting final Value of capital with a period of/to fraction flower

public Formula Na = Mn (1 + i)n applying to n integer. However, besides n in the form of integer, can is also happened by n in the form of number of fraction in halini n turned into

final Value formula of capital

u

wn

)1()1( iu

wiMN n

a

example

Capital Rp 800.000,- profited bigly is compound interest 5% one year. After final 6 30 value day year of that money is taken altogether. Whether/What to the number of Na what is accepted

ReplyIs known M = 800.000, P = 5%; i = 0,05;

n = 6 year 30 day = 6 30/360 year

82,543.076.1

)345679778,1(000.800

)004167,1)(3400956,1(000.800

)05,012

11()05,1(000.800

360

306

360

306

360

306

6

360

306

N

N

N

N

Counting Value of Capital Cash

Assess capital cash can be written down

nnn

t iM

i

MN

)1(

1

)1(

example

Is known M = Rp 100.000,-; P = 2%; i = 0,02 ; n = 8

37,490.853

853490371,0000.100

)02,01(

1000.100

)1(

1

8

t

t

t

nt

N

N

N

iMN

Counting Value of Cash of capital with a period of/to fraction flower

Its formula can be written down the following

)1()1( 2 iuw

i

MN nt

example

A merchant borrow money to bank [of] during 8 month;moon 20 day [of] under colour of flower 2,5% one month. After used up the duration really that money [is] brought back [by] 5.000.000. whether/what big [of] loan (Nt)?

ask Its know: Mn = 5.000.000; i = 0,025; n = 8

month 20 day

3,2,8 3

28

30

208

uwqmaka

n

hari

harin

u

wqn

039,485.036.4

238701482,1

000.000.5

)0166,1(21840289,1

000.000.5

)0166,1()025,1(

000.000.5

)025,032

1()025,01(

000.000.5

)1()1(

8

8

t

t

t

t

t

q

nt

N

N

N

N

N

iuw

i

MN

Thank You