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

M. Vinay
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Dinesh G
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    Please make this clearer with no abbreviations if you want more people to understand. Not everyone has English as a first language. Secondly, people will be more willing to answer if you show what you know about it. You ask for an easy way. What hard way do you know? – user88595 Jun 07 '14 at 13:06

1 Answers1

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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.

beep-boop
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