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Re: Compounded Interest

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nikhil007 wrote:
what wrong am I doing, can someone point out?

{x(1+.02)^2 } -x > 100

taking x common on LHS
(x)(1.02)^2 -1>100

(x)(1.02)^2 >101

(x) 1.04 >101

x= 101\1.04

I think i am doing some silly calculation mistake here, can someone point me out pl.
:roll:

Cheers,
Raj

Hi Nikhil,

I am not really sure what logic you are using here. Are you trying to do a Compound Interest?

The question asks for SI or Simple interest. The formula for which is :
I = PNR/100
where I - simple interest
P - principle amount/ amount invested
N - number of years
R - rate of interest per year

So,

I = 100
P = x
N = 1/2
R = 8

=> x= (100*100*2)/8
=> x= 25...

I think you, used the compound interest formula,
CI = P(1+R)^n

DUDE, DO NOT COMPLICATE. THINK SIMPLE!!!!

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