Simple Interest SI and Compound Interest CI is one of the easiest topics in CAT quantitative section. It is the result of reinvesting interest rather than paying it out so that interest in the next period is then earned on the principal sum plus previously accumulated interest. Find the future value FV of an annuity.
Thus the effective rate is re 609.
Let us calculate the compound interest on a principal P kept for 1 year at interest rate R compounded quarterly. Then find the balance after the given number of years. 150001 0048 12 122. The bank gives you a 6 interest rate and compounds the interest each month.