What is the Compount interest in RS on Rs 12500 at the rate of 12% per annum compounded yearly for 2 years?

ClearTax offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. ClearTax serves 2.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with ClearTax platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with ClearTax GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. ClearTax can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with ClearTax by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download ClearTax App to file returns from your mobile phone.

What is the calculator about?
The Recurring Deposit (RD) calculator will help you calculate the maturity value of the investment if it grows at a certain interest rate.

How to use it
The maturity value of the deposit will depend on the amount of investment, duration of the deposit and the interest rate.

You will have to enter the date of opening of the FDRD, and then enter the amount of deposit which has to between Rs 500 and Rs 10 lakh. Thereafter, the duration has to be entered in months which have to be between 6 months and 120 months.

Lastly, enter the annual rate of interest at which the recurring deposit investment has been made.

One can use the slider to put in different recurring deposit amounts to arrive at the final maturity value.

What it shows
On submitting the above information, the calculator will show the final maturity value of the investment. Based on the date of deposit and the tenure, the maturity date of the investment will also be shown. In addition, the break-up of maturity value, i.e., the investment amount and the interest earned will be shown separately.

How the result is arrived at
The formula used for arriving at the maturity value of a recurring deposit over a certain period at a certain interest rate is:

In case of recurring deposits, the compounding happens on quarterly basis.

The formula is: A = P*(1+R/N)^(Nt)

Here, A is the maturity amount in Rs., the recurring deposit amount is 'P' in Rs., 'N' is the compounding frequency, interest rate R in percentage and 't' is the tenure.

For a 12 month RD of Rs 5,000 at 8 percent per annum, the maturity value will be the sum of the series as below:

A = P*(1+R/N)^(Nt)
= 5000*(1+.0825/4)^(4*12/12) = 5425.44
= 5000*(1+.0825/4)^(4*11/12) = 5388.64
...
= 5000*(1+.0825/4)^(4*1/12) = 5034.14
Total maturity value ( sum of series) = Rs 62730.85

Solution

Principal (P) = Rs. 12500 (adsbygoogle = window.adsbygoogle || []).push({}); Rate (R_1) =15% p.a for first year.R2=16% p.a for second yearPeriod = 2 years.∴ Amount =P(1+R1100)(1+R2100)=Rs.12500(1+15100)(1+16100) =Rs.12500×115100×116100=Rs.16675

What is the compound interest in RS on Rs 12500 at the rate of 12% per annum compounded yearly for 2 years?

What is the compound interest in RS on Rs 12500 at the rate of 12% per annum compounded yearly for 2 years 1 point 2000 3400 3180 1200?

What is interest on Rs 12500?

What is the interest of 10000 of 12%?