# Compound Interest Formula In Excel – Calculator, Example & Derivation

**Edit**

##
**Compound Interest
Formula**

Whenever we borrow money from
someone, an amount of interest gets added along with. That amount of interest
is Compound Interest and here we are providing you Compound Interest Formula
details. All the details that are concerned with the Compound Interest like use
of Compound Interest Formula In Excel , Calculator, Example & Derivation of
Compound Interest etc. compound Interest in calculated on various basis like
monthly basis, quarterly basis (after every four month), half yearly basis
(after every 6 months) and annually (once in a year). With the help of the
Formula of Compound Interest it will become easier to calculate the amount of
interest to be paid and to be received. To know more lets take a glance over
this whole page…

__This Page Includes:__- Formulas Of Compound Interest With Example
- Compound Interest Formula Excel
- Compound Interest Formulas PDF
- How to calculate Monthly/ Quarterly/ Half Yearly/ Annually Compound Interest
- Compound Interest Solved Question and Answer

The whole usage of Compound Interest Formula in Maths is described here on this page. via the details given you can get to know about Compound Interest Formula Calculator India and you will also get details about the usage of Compound Interest in real life. Compound interest formulas are also asked in examination of 9th, 10th standard and sometimes in the competitive examinations too. Keeping all these facts in mind we the team members of www.privatejobshub.in have given the details about the usage of Compound Interest Formula In Excel and all other relevant facts.

###
**Compound Interest Formula**

**Compound Interest Formula In Excel**

1. Suppose you put Rs.100 into a bank. How much will your
investment be worth after one year at an annual interest rate of 8%? The answer
is Rs.108.

2. Now this interest (Rs.8) will also earn interest
(compound interest) next year. How much will your investment be worth after two
years at an annual interest rate of 8%? The answer is Rs.116.64.

3. How much will your investment be worth after 5 years?
Simply drag the formula down to cell A6.

The answer is Rs.146.93.

4. All we did was multiplying 100 by 1.08, 5 times. So we
can also directly calculate the value of the investment after 5 years.

which is the same as:

Note: There is no special function for compound interest in
Excel. However, you can easily create a compound interest calculator to compare
different rates and different durations.

5. Assume you put Rs.10,000 into a bank. How much will your
investment be worth after 10 years at an annual interest rate of 5% compounded
monthly? The answer is Rs.16,470.

6. Assume you put Rs.10,000 into a bank. How much will your
investment be worth after 15 years at an annual interest rate of 4% compounded
quarterly? The answer is Rs.18,167.

__Compound Interest Formula Calculation__

**How to calculate Monthly/ Quarterly/ Half Yearly/**

**Annually Compound Interest with Example?**

Here in the below section we are going to provide you the Compound
Interest Formula With Example. Here we have stated Compound Interest Formula
For Half Yearly, Compound Interest Formula For Quarterly, Compound Interest
Formula For Monthly and Compound Interest Formula For Annually and also have
given some questions which will clear your visions more.

__Compound Interest Formula Example__

__Monthly Calculation of Compound Interest__:

- Find the compound interest on Rs. 2,000 at 4% per Month for 1 year, compounded monthly?

**Formula Used:**Compound Interest Formula Monthly

__Quarterly Calculation of Compound Interest:__

- Find the compound interest on Rs.16,000 at 20% per annum for 9 months, compounded quarterly

**Formula Used:**Compound Interest Formula Quarterly

**Explanation:**

__Half Yearly Calculation of Compound Interest__:

- A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:

**Formula Used:**Compound Interest Formula Half-Yearly

__Annually Calculation of Compound Interest:__

- Find the compound interest on Rs. 7500 at 4% per annum for 2 years, compounded annually.

**Formula Used:**Compound Interest Formula Annually

**Explanation:**

__Compound Interest Question and Answer__

- There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?

- Rs. 2160
- Rs. 3120
- Rs. 3972
- Rs. 6240
- None of these

Answer: C

**Explanation:**

**2.**The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:

- 2
- 5/2
- 3
- 4

Answer: A

**Explanation:**

**3.**What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?

- Rs. 9000.30
- Rs. 9720
- Rs. 10123.20
- Rs. 10483.20
- None of these

Answer: C

**Explanation:**

**4.**The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:

- 625
- 630
- 640
- 650

Answer: A

**Explanation:**

**5.**What is the difference between the compound interests on Rs. 5000 for 1 years at 4% per annum compounded yearly and half-yearly?

- Rs. 2.04
- Rs. 3.06
- Rs. 4.80
- Rs. 8.30

Answer: A

Take
a Test Now |

**Explanation:**

**6.**At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

- 6%
- 6.5%
- 7%
- 7.5%

Answer: A

**7.**Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?

- Rs. 8600
- Rs. 8620
- Rs. 8820
- None of these

Answer: C

**8.**The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:

- 6.06%
- 6.07%
- 6.08%
- 6.09%

Answer: D

**9.**The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:

- 3
- 4
- 5
- 6

Answer: B

**10.**Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:

- Rs. 1550
- Rs. 1650
- Rs. 1750
- Rs. 2000

Answer: C

**11.**The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:

- Rs. 2.50
- Rs. 3
- Rs. 3.75
- Rs. 4
- None of these

Answer: B

**12.**The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is:

- Rs. 400
- Rs. 500
- Rs. 600
- Rs. 800

Answer: B

**13.**The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?

- 8
- 10
- 12
- Cannot be determined
- None of these

Answer: Option A

**14.**If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same at the same rate and for the same time?

- Rs. 51.25
- Rs. 52
- Rs. 54.25
- Rs. 60

Answer: A

**15.**The difference between the compound interest compounded annually and simple interest for 2 years at 20% per annum is Rs.144. Find the principal?

- Rs. 3000
- Rs. 3300
- Rs. 3600
- Rs. 3900

Answer: C

**Compound Interest Formula**

Here in the above section of this
page we have provided all the details regarding the Compound Interest Formula
India. In our country most of the savings are deposited in banks and on the basis
of the amount we deposit the banks gives us a particular amount of interested. As
same as banks if we borrow money from a third part (other than bank) than also
we pay interest on the amount we borrow. The formulas given above are used to
calculate that interested which is also called as Compound Interest. There are
many online applications available through which you can check the Compound
interest Compound Interest Formula Online and also get Compound Interest
Formula Aptitude. Compound interest Depends on money
deposited (principal), the annual interest rate, number of times
the money is compounded per year and years for which money is left in
the bank.

With the help of the information,
formulas, examples you can now easily calculate your interest in just simple
steps. You can also bookmark this page by using the CTRL+D tab. With the help
of the steps it will become simpler for you to calculate the Compound Interest.
Still if you have any sort of query in your mind regarding the Compound Interest Formula Aptitude, Compound
Interest Formula Example and Formulas Of Compound Interest then you can ask our
experts about it by giving your comments in below given comment box. You may also join us on Face book and Google
plus

## No comments

Don't Add Comment with Spam Purpose