Compound Interest Time in Fractions


 
 
Concept Explanation
 

Compound Interest Time in Fractions

Calculating Compound Interest When Time is Given in Fractions:

When time is given as improper fraction, we first convert it into mixed fraction. The wehole number is used as its in the formula for compound Interest. and for the fraction part we will divide the rate with the fraction.

Let the principal be P and Rate is considered as R and suppose the time period is 15/4 years. then

  large We; will; first; convert; time ;into ;mixed; fraction ;as;3frac{3}{4}

large Amount = Pleft [ 1+frac{R}{100} right ]^3;X;left [ 1+frac{frac{3}{4}XR}{100} right ]

For Example:Reena borrowed 16000 at 12% rate of interest 4/3 years. Calculate the amount she had to pay in the end.

P= 16000 Rs

R= 12 %

T= 4/3

=large 1frac{1}{3} ;years

  large Amount = 16000left [ 1+frac{12}{100} right ]^1;X;left [ 1+frac{frac{1}{3}X12}{100} right ]

large Amount = 16000left [ 1+frac{3}{25} right ]^1;X;left [ 1+frac{4}{100} right ]

large Amount = 16000left [ frac{28}{25} right ];X;left [ 1+frac{1}{25} right ]

large Amount = 16000;X; frac{28}{25} ;X;frac{26}{25}=18636.8 Rs

 
Sample Questions
(More Questions for each concept available in Login)
Question : 1

Find the compound interest on an amount of Rs 5000 at rate of interest 5 %  when time period is 1 year 3 months. The amount is compounded annually

Right Option : D
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Question : 2

Calculate compound interest if principal = Rs 10,000, rate of interest 8 % , time period is 1 year 3 months. Compounded annually

Right Option : C
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Explanation
Question : 3

Find the amount if Rs 2500 at rate of interest 6 %  when time period is 1 year 4 months. The amount is compounded annually

Right Option : C
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Explanation
 
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