Is there any way to find compound interest easily?

Question

What will be the compound interest on a sum of Rs. $25,000$ after $12$ years at the rate of $12%$ per annum?

Answer 1

There is a formula for compound interest: $$C=C_0(1+i)^n,$$ where:

• $C_0$ is the starting capital
• $i$ is the effective interest rate per annum

• $n$ is the number of years for which the money is in the account

• $C$ is the accumulated value (i.e. the final value) of the capital after $n$ years.

Try and apply this formula to your question.