1) If P is the Principle, R is the rate of interest per annum (in percentage), T is the time in years thenSimple Interest2) Simple Interest (SI) is same for all the years 3) Annual installment (Y) that discharges a loan of amount A due after T years rate of interest being R% per annum
Let Principle = P, Rate = R% per annum, Time = T years, Frequency = NCompound InterestFrequency means number of times we get interest in a year 4) 5) For the first year Simple Interest and Compound Interest are equal. 6) When interest is compounded annually then, N = 1 7) When interest is compounded half-yearly then, N = 2 8) When interest is compounded quarterly then, N = 4 9) When interest is compounded monthly then, N = 12 10) When rates are different for different years i.e. for 1 ^{st}, 2^{nd}, 3^{rd},---,, N^{th} year respectively then |