Friday, January 13, 2012

(VU-Study-Corner) MTH001_Assignment solution discussion

Assalamoalaikum everyone,

I would like to know the formulae for compound interest rate, if the interest rate is being compounded weekly.

Question to be solved:

At what annual interest rate must Rs. 1,34,00,000 be invested by Sarah today so that it will grow to Rs. 4,59,00,000 in 15 years if interest is compounded weekly?


Helping material

S = P(1 + r/100)^ n
Compound interest = S - P

Where,
S = Money accrued after n years also called compound amount
P = Principal
r = Rate of interest
n = Number of periods

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