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Central Government Service

Program for SSC CGL

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Maths / Comparing Quantities / Compound Interest Time in Fractions

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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

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

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

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

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

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

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₹10800 ₹2000 + Taxes

Compound Interest Time in Fractions

₹10800 ₹2000 +
Taxes