Question

i didn't understand how it comes , can any body explain, plse go through the following link:
http://www.jiskha.com/display.cgi?id=1364807092

Answer 1

@msingh , let us first start with your introduction with compound interest formula. Can you tell me the formula for compound interest Msingh?

Answer 2

yes, i know theformula for CI

Answer 3

CI=A+P

Answer 4

What is the formula for Amount?

Answer 5

A=P(1+r/100)

Answer 6

\(A_n = P(1+\cfrac{R}{100})^n\)

Answer 7

n = no. of times compounded ...

Answer 8

Solve A for 8% interest first [n=1 as it is compounded annualy]

Answer 9

^annually

Answer 10

k

Answer 11

See http://en.wikipedia.org/wiki/Compound_interest#Compound_Interest
for a formula

Answer 12

the interest rate for 10% compounded semi-annually (i.e. twice a year)
means you use rate= 0.10/2
the number of compoundings in one year is 2, so the formula is
P (1+ r/(100*2))^(2*1)
or
P (1+0.05)^2

Answer 13

the amount of principal plus interest for 8% compounded annually for one year is just
P(1+0.08)^1 or
P(1+0.08)

Answer 14

if you had compounding monthly, for n years it would be
P(1+r/(100*12))^(12*n)

Answer 15

@msingh is your doubt clear now?

Answer 16

yeah, i have solved it
...but one thing i have doubt about this line
AFTER 1 YEAR WOULD HAVE BEEN 225 MORE

Answer 17

It means you have X apples today then after 1 year you will have 225 + X apples.

I just gave you an example.

Answer 18

k,i got it

Answer 19

On the place of apples, we are talking about amount here.

Welcome msingh

Answer 20

@mathslover & @phi
thank you so much