What would be the amount if interest is rupees 800 at 6% per year for 9 years
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Compound Interest: The future value (FV) of an investment of present value (PV) dollars earning interest at an annual rate of r compounded m times per year for a period of t years is: Show
where i = r/m is the interest per compounding period and n = mt is the number of compounding periods. One may solve for the present value PV to obtain: PV = FV/(1 + r/m)mtNumerical Example: For 4-year investment of $20,000 earning 8.5% per year, with interest re-invested each month, the future value is FV = PV(1 + r/m)mt = 20,000(1 + 0.085/12)(12)(4) = $28,065.30Notice that the interest earned is $28,065.30 - $20,000 = $8,065.30 -- considerably more than the corresponding simple interest. Effective Interest Rate: If money is invested at an annual rate r, compounded m times per year, the effective interest rate is: reff = (1 + r/m)m - 1.This is the interest rate that would give the same yield if compounded only once per year. In this context r is also called the nominal rate, and is often denoted as rnom. Numerical Example: A CD paying 9.8% compounded monthly has a nominal rate of rnom = 0.098, and an effective rate of: r eff =(1 + rnom /m)m = (1 + 0.098/12)12 - 1 = 0.1025.Thus, we get an effective interest rate of 10.25%, since the compounding makes the CD paying 9.8% compounded monthly really pay 10.25% interest over the course of the year. Mortgage Payments Components: Let where P = principal, r = interest rate per period, n = number of periods, k = number of payments, R = monthly payment, and D = debt balance after K payments, then R = P � r / [1 - (1 + r)-n] andD = P � (1 + r)k - R � [(1 + r)k - 1)/r] Accelerating Mortgage Payments Components: Suppose one decides to pay more than the monthly payment, the question is how many months will it take until the mortgage is paid off? The answer is, the rounded-up, where: n = log[x / (x � P � r)] / log (1 + r) where Log is the logarithm in any base, say 10, or e.Future Value (FV) of an Annuity Components: Ler where R = payment, r = rate of interest, and n = number of payments, then FV = [ R(1 + r)n - 1 ] / r Future Value for an Increasing Annuity: It is an increasing annuity is an investment that is earning interest, and into which regular payments of a fixed amount are made. Suppose one makes a payment of R at the end of each compounding period into an investment with a present value of PV, paying interest at an annual rate of r compounded m times per year, then the future value after t years will be FV = PV(1 + i)n + [ R ( (1 + i)n - 1 ) ] / iwhere i = r/m is the interest paid each period and n = m � t is the total number of periods.Numerical Example: You deposit $100 per month into an account that now contains $5,000 and earns 5% interest per year compounded monthly. After 10 years, the amount of money in the account is: FV = PV(1 + i)n + [ R(1 + i)n - 1 ] / i =5,000(1+0.05/12)120 + [100(1+0.05/12)120 - 1 ] / (0.05/12) = $23,763.28 Value of a Bond: Let N = number of year to maturity, I = the interest rate, D = the dividend, and F = the face-value at the end of N years, then the value of the bond is V, whereV = (D/i) + (F - D/i)/(1 + i)NV is the sum of the value of the dividends and the final payment. You may like to perform some sensitivity analysis for the "what-if" scenarios by entering different numerical value(s), to make your "good" strategic decision. MENU:Replace the existing numerical example, with your own case-information, and then click one the Calculate. Here P = Rs 800 T = 2 years 6 months =2 \frac{6}{12} =2 \frac{1}{2} = 5 / 2 years Hence, R = (I × 100) / (P × T) = (130 × 100) / {800 × (5 / 2)} % p.a. On simplification, we get, = (130 × 100 × 2) / (800 × 5) % p.a. = (130 × 2) / 40 % = 130 / 20 % p.a. = 13 / 2 % = 6.5% p.a. Therefore, the required rate of interest is 6.5% p.a. Traditional banks take a long time to process personal loan applications, and money lenders are known to charge high-interest rates making the process very dubious. In this whole financial setup, personal loan apps have emerged as an excellent idea to provide safe and hassle-free immediate cash loan in India within 1-hour. 24 Best Instant Personal Loan Apps In India AppInterest Rate (per Month)Minimum & Maximum Loan AmountTenureApp Rating (Out of 5)Download App  Download App Download App Download App Download App Download App Download App Download App Download App Download App Download App Download App Download App Download App Download App Download App Download App Download App Download App Download App Download App Download App Download App Download App Data Source: Google Play Store and respective apps’ websites. (Last checked – 5th December, 2022) When you are in urgent need of a quick cash loan, there are very few options available. One is to seek a personal loan from traditional banks, which can be a time-consuming process requiring a lot of paperwork and multiple document submissions. The other option is taking a loan through a credit card, but interest rates are extremely high. Asking your friends or relatives for money is another option, but it can be embarrassing. And not everyone is lucky enough to get a salary advance loan in India from their employers. So, the best option for a quick cash loan in India is through personal loan apps. The internet has revolutionised the way India works. Today you can purchase anything from vegetables to a Smart TV and more, sitting in the comfort of your home. The situation is no different if you need fast and easy instant personal loans in India. There are best instant loan apps in India, which can make your personal loan process a lot easier and convenient. You can apply online with the requisite scanned documents, and the loan amount can be delivered to your doorstep or credited to your bank account, depending on your convenience. MoneyTapMoneyTap is India’s first app-based credit line. The best part is its no-usage-no-interest feature, which has made taking credit more affordable. Thanks to this feature, you only pay interest on the amount used. It is a personal loan app that provides a line of credit to customers, which works as an instant loan or a credit card. MoneyTap is essentially a money lending company with flexible interest rates, currently servicing clients in Delhi NCR, Mumbai, Bangalore, Hyderabad, and Chennai as well as 30+ cities in India. Let’s take a look at a hypothetical example to understand how MoneyTap’s Personal Loan 2.0 works. Arjun has been approved for a credit line of ₹ 1 Lakh with MoneyTap but he uses only ₹ 50,000 out of it. If he had taken a traditional personal loan he would have been charged interest on the entire ₹ 1 Lakh from day 1. But, with MoneyTap, he will only be charged interest on the amount he uses (₹ 50,000). With MoneyTap Amount to be paid after 1 year, assuming 13% interest rate, loan amount = ₹ 100,000, used only = ₹ 50,000: 50,000 X 13 = 56,500 Arjun will end up paying ₹ 56,500 by end of the year. With a traditional personal loan Amount to be paid after 1 year, assuming 13% interest rate, loan amount = ₹ 100,000: 100,000 X 13 = 113,000 Arjun will end up paying ₹ 113,000 by end of the year. Apply for MoneyTap now DhaniDhani popularly marketed as phone se loan app, instantly disburses the loan amount to your bank account. You can apply for a personal loan anytime, anywhere. You can get a loan of up to ₹ 15 Lakh instantly at an interest rate starting at 12%. 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The company caters to all profiles like support executives, business owners, salaried professionals, managers, stay-at-home moms, teachers and more with no minimum limit on the salaries, unlike other personal loan apps. Home CreditHome Credit India is a part of the international Home Credit Group that has a presence across ten countries in Europe and Asia. The India chapter started in 2012 and it already has operations in over 60 cities across 15 states. The personal loan app sanctions personal loan of up to ₹2 Lakh with a repayment tenure ranging from 9 months to 4 years. The instant loan app in India makes financial services simple, transparent and easily accessible to you. LazyPayLazyPay is powered by PayU. You just need to enter your mobile number to find out your personal loan eligibility. With quick approvals and safe online loan application processing, LazyPay disburses 1 million+ loans every month. 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The company provides personal loans online of up to ₹ 5 Lakh and you can use anywhere from ₹ 5,000 up to your entire approved limit at one time. PaySense also offers an EMI calculator through which you can check how much you will be paying every month. RupeeRedeeIncepted in 2018, RupeeRedee is a digital lending platform that allows consumers to fulfill their lending needs in simple steps with the help of technology. The app gives you access to personal loans within a few minutes at your fingertips. It is a tech-driven digital lending platform that leverages technology and data sciences to make lending accessible for India’s massive population of underserved customers. With robust KYC and a smooth process, it makes the consumer journey hassle-free, quick and also safeguards your data. It currently has 4.51 million installs on Google Play Store and has an average traffic of 400K on its website. Operating with its own Captive NBFC FincFriends Private Limited in the background to facilitate short-term personal loans coupled with digital lending services and have deployed various forms of underwriting including alternate data sources and is not restricted to credit score-based underwriting only. Following the Fair Practice Code and compliance process, it offers its consumer a great experience and satisfaction. StashFinStashFin is one of the best online loan apps in India. The startup was founded by a team of experienced financial services professionals with an aim to make lending easier for people in India. The team has worked with various disciplines that include customer experience, technology and process re-engineering and through its collective experience, StashFin aims to deliver best in class services and superior convenience to its customers. Apply for an instant loan through its online loan app in India. 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Shiv Nanda Shiv Nanda is a financial analyst at MoneyTap who loves to write on various financial topics online. He also advises people on financial planning, investment choices and budgeting skills, and helps them make their financial lives better. What will be the simple interest on Rs 800 for 5 years at 8% per annum?Therefore the correct answer is Rs.748
The Mains exam was held on 8th October 2022.
What is the simple interest of rupees 800 on 5% per annum for 3 years?Hence, we get the value of S.I as equal to Rs. 120.
What will be the compound interest on 800 for 2 years at 10% per annum?The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525.
What is the compound interest to be paid on ₹ 800 for 2 years at 4% pa?800 at 4% p.a. compounded annually will amount to Rs. 832.
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