Compound Interest - Important Formulae

1. Let Principal = P, Rate = R% per annum, Time = n years.
2. When interest is compound Annually:

   Amount = P		1 +	R		n
   			100

3. When interest is compounded Half-yearly:

   Amount = P		1 +	(R/2)		2n
   			100

4. When interest is compounded Quarterly:

   Amount = P		1 +	(R/4)		4n
   			100

5. When interest is compounded Annually but time is in fraction, say 3 years.

   Amount = P		1 +	R		3	x		1 +	R
   			100						100

6. When Rates are different for different years, say R₁%, R₂%, R₃% for 1^st, 2^nd and 3^rd year respectively.

   Then, Amount = P

   1 +

   R1

   1 +

   R2

   1 +

   R3

   .

   100

   100

   100

7. Present worth of Rs. x due n years hence is given by:

   Present Worth =	x	.
   	1 + R 100

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