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### Course: Class 8 Math (Assamese)>Unit 7

Lesson 4: Compound Interest

# Solved example: compound interest

In a previous video, we learned that compound interest is just a special case of percentage increase. Here, let's learn how to solve problems involving compound interest by solving an example question. Created by Aanand Srinivas.

## Want to join the conversation?

• Let's suppose that we need to find the compound interest after 1 year and 1 month if the interest is compounded quarterly. So, we can find the CI of one year by finding it for the 4 quarters. Now, to find for 1 month, do we take the original principal value and increase it to the interest rate per month or do we take the new amount obtained at the end of 1 year and increase that to the interest rate per month?
• Did anyone notice how at the video skipped over Aanand Srinivas's writing? That's kinda weird.
• What is the Formula Of Compound Interest
(1 vote)
• The formula for compound interest is P (1 + r/n)^(nt), where P is the initial principal balance, r is the interest rate, n is the number of times interest is compounded per time period and t is the number of time periods
• Hi, I'm really struggling to understand the compound interest side, where you add the 1 to the 5/100 and get 105/100? surely it should be 5/100 = 1/20 or even 6/100 (1 + 5) = 1/16.6 recurring...
How do you get to 105/100...?
at - why and how do you get 1 + 5/100?
at - how do you get that to = 105/100?
• 1)He factored the x
2)(1+5/100) We can write 1 as 100/100(when you divide it gives )So, 100/100+5/100=105/100
• I wonder how in 6 months there are two quarters
(1 vote)
• A year has 12 months. One quarter of the year will have 12/4 = 3 months. So, 6 months will have 1 quarter (3 months) + 1 quarter (3 months) which is 2 quarters.
• hello may i know how to solve this problem?

What rate compounded  monthly will any amount of money accumulate thrice of itself for a period of
4 years and 6 months?