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Posted on Sep 27, 2007

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# F.y.b.com what will be the simple interest on Rs.25000/- for 5 years at 9% p.a. ?

### Anonymous

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• Posted on Sep 27, 2007
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I do not know why you are asking it is a simple (25000*5*9)/100 hope this will help.

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### Simple interest

Using fixed simple interest:
so after 3 years you have \$1,500 + \$225 = \$1,725.00

Compound interest:
If you use/want compound interest you gain 5% of the new amount every year. So start with \$1,500
Year 1: \$1,500 + \$75 = \$1,575
Year 2: \$1,575 + \$78.75 = \$1,653.75
Year 3: \$1,653.75 + \$82.6875 = \$1736.4375
So final sum is \$1736.4375.
However banks usually round down so \$1736.43

### I want to invest \$5000 for 10 years through internet at 9% , how much would i get in return?

FV=PV (1+(i/12)^12n
Assuming it's compound interest.
FV=Future Value i= interest Rate n=interest period PV =Present Value
\$12,260
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### . How much would you have to invest now at 8% interest to have \$25,000 at the end of 7 years?

Press APPS, select the Finance app, and select the TVM Solver. Enter 7 for N, 8 for I%, -25000 for FV. Navigate to the PV line and press ALPHA ENTER to see the amount.

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=10000*(1+0.96)^12
=10000*(1+0.10)^18
=10000*(1+0.10)^24

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