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    Business Maths Excel

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    Irfan
    Mr. Ali deposited Rs. 100,000 in a bank that offers 12% interest annually. After 4 years, the interest earned is Rs. 48,000 and the total amount is Rs. 148,000.

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    © All Rights Reserved
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    Business Maths Excel

    Uploaded by

    Irfan
    65 views10 pages
    Mr. Ali deposited Rs. 100,000 in a bank that offers 12% interest annually. After 4 years, the interest earned is Rs. 48,000 and the total amount is Rs. 148,000.

    Original Title

    Business Maths excel

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    Mr. Ali deposited Rs. 100,000 in a bank that offers 12% interest annually. After 4 years, the interest earned is Rs. 48,000 and the total amount is Rs. 148,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    65 views10 pages

    Business Maths Excel

    Uploaded by

    Irfan
    Mr. Ali deposited Rs. 100,000 in a bank that offers 12% interest annually. After 4 years, the interest earned is Rs. 48,000 and the total amount is Rs. 148,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 10

    Mr. Ali deposited an amount of Rs. 100,000 in a bank.

    The bank off


    12% per anum. How much interest will Ali receive after 4 years?
    receive in total after 4 years?

    Data
    Principal P 100,000
    Rate of Interest R 12% 0.12
    Time in years T 4 years

    1) Interest I ??
    2) Sum S ??

    Solution:
    1) Interest I =PRT

    I = 100,000*0.12*4

    Interest 48,000

    2) Sum S = P+I

    Sum 148,000
    nk. The bank offers simple interest of
    ve after 4 years? How much will he
    4 years?
    Mr. Ali got Rs. 13,000 after 3 years of investment. The rate of ret
    interest. What was his initial investm

    Data Solution:
    P ??
    S 13,000
    R 10% 0.1
    T 3 years

    Mr. Ali got Rs. 25,000 after 5 years of investment. The rate o
    investment was 8% simple interest. What was his initial inv

    Data Solution:
    P ??
    S 25,000
    R 8% 0.1
    T 5 years

    Mr. Ali got Rs. 25,000 by investing Rs. 15000. The rate of r
    investment was 8% simple interest. How many years it too
    investment to grow from 15000 to 25000?

    Data Solution:
    P 15000
    S 25,000
    R 8%
    T ?? years
    s of investment. The rate of return on investment was 10% simple
    est. What was his initial investment?

    Solution:

    S = P(1+RT)
    P(1+RT) =S
    P = S / (1+RT)
    P = 13000 (1+0.1*3)

    Principal 10,000

    years of investment. The rate of return on


    nterest. What was his initial investment?

    Solution:

    S = P(1+RT)
    P(1+RT) =S
    P = S / (1+RT)

    Principal 17,857.143

    vesting Rs. 15000. The rate of return on


    interest. How many years it took for the
    grow from 15000 to 25000?

    Solution:

    S = P(1+RT)
    P*(1+RT) =S
    1+RT = S/P
    RT = (S/P) - 1
    T = [ (S/P) - 1 ] / R

    Principal #VALUE!
    Simple Interest Compound Interest
    P 1000 P 1000 bank deposit
    t 3 t 3
    r 0.1 r 0.1

    Year Principal Interest Amount Year Principal Interest


    1 100 1100 1 1000 100
    2 1000 100 1200 2 1100 110
    3 100 1300 3 1210 121

    Mr. Ali deposited Rs. 5000 in a bank for 3 years. If the interest rate is 10% p.a, what will be the total
    amount Mr. Ali will receive at the end of 3 years?
    1 Simple interest
    2 Compound interest
    Simple Interest Compound Interest
    P 5000 P 5000 bank deposit
    t 3 t 3
    r 10% r 10%

    Year Principal Interest Amount Year Principal Interest


    1 500 5500 1 5000 500
    2 5000 500 6000 2 5500 550
    3 500 6500 3 6050 605
    Total 5000 1500 6500 Total 5000 1655

    Compound Interest with semiannual compounding Compound Interest with annual compounding
    P 5000 bank deposit P 5000 bank deposit
    t 3 years t 3
    r 10% per anum r 10%
    m=number of compoundings 2 semiannually
    5%

    Year Part of year Principal Interest Amount Year Principal Interest


    Jan-June 5000 250 5250 1 5000 500
    1
    Jul-dec 5250 262.5 5512.5 2 5500 550
    Jan-June 5512.5 275.625 5788.125 3 6050 605
    2
    Jul-dec 5788.125 289.4063 6077.531 Total 5000 1655
    Jan-June 6077.531 303.8766 6381.408
    3
    Jul-dec 6381.408 319.0704 6700.478 Interest
    Compound interest > simple interest
    Semiannual comp > annual compounding
    Quarterly comp > semiannual comp
    Monthly comp > quarterly comp

    Compound Interest with Quarterly Compounding


    P 5000 bank deposit
    t 3 years
    r 10% per anum
    m=number of compoundings 4 quarterly
    2.500% rate per quarter

    Year Part of year Principal Interest Amount


    Jan-Mar 5000 125 5125
    Apr-Jun 5125 128.125 5253.125
    1
    Jul-sep 5253.125 131.3281 5384.453
    oct-dec 5384.453 134.6113 5519.064
    Jan-Mar 5519.064 137.9766 5657.041
    Apr-Jun 5657.041 141.426 5798.467
    2
    Jul-sep 5798.467 144.9617 5943.429
    oct-dec 5943.429 148.5857 6092.014
    Jan-Mar 6092.014 152.3004 6244.315
    Apr-Jun 6244.315 156.1079 6400.423
    3
    Jul-sep 6400.423 160.0106 6560.433
    oct-dec 6560.433 164.0108 6724.444
    nd Interest
    bank deposit

    Amount
    1100
    1210
    1331

    at will be the total

    nd Interest
    bank deposit

    Amount
    5500
    6050
    6655
    6655

    th annual compounding
    bank deposit

    Amount
    5500
    6050
    6655
    6655
    > simple interest
    annual compounding
    emiannual comp
    rterly comp

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