Some important formulae useful in day-to-day life

    Here are some important formulae that we need to know in our day-to-day life.

          1.  Compound Interest:
    CI (Compound Interest) = P(1 + r/100)n
Where
P = Principal 
r = rate of interest (per year)
n = no. of years


    2. The Rule of 72:
Number of years it takes the Principal to double is -
N = 72/r
where
r = rate of interest
n = no. of years
eg 1: 
If rate of interest is 6%
No. of years for the money to double = 72/6 = 12 years.

eg 2: 
If you want the money to double in 5 yrs.,
The rate of interest should be: 72/r = 5,
r = 72/5 = 14.4%

The Rule of 72
Total return %
Years required to double investment
1%
70
4%
18
5%
14
6%
12
8%
9
10%
7
12%
6
14%
5
16%
4.6
18%
4
20%
3.8
24%
3

3Recurring Deposits:
Maturity value based on quarterly compounding:
M =R [ (1+i)n – 1]
         --------------------  
         1- (1+i) -1/3
where

M = Maturity value
R = Monthly installment
n = Number of quarters
i = Rate of interest/400

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