Hello and welcome to our new video. In this video we are
going to calculate compound interest.
Now what is compound interest? You must have used credit
card.
In credit card we get 20 days extra but suppose if you are
not able to pay credit card bill in that duration then what
happens?
Compound interest is the amount of interest you get from
day 1 to day 50. If you are not able to pay that amount
then it is called compound interest.
In last video we have seen how to calculate simple
interest. We already know that simple interest has a
formula which we have studied in previous classes.
In this video we are going to calculate compound interest.
Here I have some data like serial number, principal amount,
time, percentage, simple interest and compound money.
Here I have given a question like what will be the compound
interest at the rate of 13% per annum for 5 years.
Now you see the difference between simple interest and
compound interest. In last video we have seen that if we
want to calculate simple interest for 4 years or 5 years
then we can do it together.
But here if I have to calculate for 5 years then I have to
calculate in every year.
Now here I have to calculate principal amount which is
20,000 rupees. Here I have to calculate for 5 years so I
have to calculate in every year.
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calculate in every year so I have to calculate in every
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calculate in every year.
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calculate in every year.
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calculate in every year.
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calculate in every year.
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calculate in every year.
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calculate in every year.
in terms of loan so to bring it here we have to put equals
to and select the cell and F11
I have clicked here now we have to take it out for 6 months
so let's drag it 3,4,5,6 and here for 2 months so let's
drag it this value is going to be constant 18% is also
going to be constant principal interest, compound, money
and principal amount now how will we do this let's drag it
down and drag it here so now all this will come out that we
had 30,900 now in 30,900 when you add 927 so how much is
it? 31,827 now this 31,827 how will it behave for next 2
months it will behave like principal
let's calculate the total equals to sum and here we have
selected it and close the bracket enter so we have 5821 let
me change the format so we have 5821.56 so we have 5821.56
so we have 5821.56 so we have 5821.56 now how to find out
that if I have 30,000 if I subtract simple interest from
compound money and I get this amount so I will understand
that all the calculations are correct so let's do the same
let me change the format now see now what to do sign equals
to minus minus simple interest
this is my simple interest and enter
I got 30,000
I had 30,000 principal amount and here also 30,000 is left
so we can say that all the calculations of simple interest
in 2 months first will be 900 then 927 then 954 then 983
but you don't know that how this calculation is happening
so now you can do this calculation you can cross check
I hope you liked this video and understood that how to find
out compound interest if you still have any doubt then
watch this video again
I will meet you in next video till then keep practicing