Last week we talked about NUT. and i was assuming that everybody knows how to calculate compound interest. But after reading comments. 70% don’t know how to calculate compound interest. I guess we learned compound intererst from 7-8th class. It’s very basic If you deposit money in bank account so the interest you get is compound interest. SO if you don’t know how to calculate this. This is wrong. You should know. Where you are investing , you are supposed to aware how much interest you’ll get. Let’s understand this on white board How to calculate compound interest. Let’s say i gave 1000 to someone , so what will be the value after 1 year. at a interest of 10% 100 rs will be simple interest. So i got 1100rs after 1 year with interest. Next year again i’ll get 100rs interest. But logically Next year i gave them 1100rs right? So 100 won’t be the interest according to 1100rs. 1000 + 100=1100rs So in second year i should get interest at 1100rs not 1000rs. But the bank gave 100rs interest. Logically they should’ve given 110rs. But Bank gave 100rs. That’s why simple interest formula didn’t work after 1 year. Now advanced thing i.e Compound interest. In Compound interest you’re getting 110rs in second year. So in 1 st year you get 100rs Next year you get 110rs. 100 + 10% of 100=110. Means overall you get 110rs. In third year , you get 100 + 10% of 110rs=calculate ;p So if you want to calculate for 10 year then? THis is the formula for compound interest. P=principal amount Like here P=1000 R is rate of interest Rate=10% N=No. of year Now what we calculated here. Here we took the value of n=1,2,3…… It means we are calculating compound interest manually. You’ll see somewhere that 10% compounded annually. means 1,2,3……. If it’s compounded monthly Then you need to calculate in terms of months. Like you are investing somewhere for 5 years So there are 12 months in 1 year 12*5=60 months Calculate the compound interest monthly. Your value n is 60 here. and rate is annual rate Let’s say 12% What we will do rate-12/12(months) So logically rate of interest is 1% monthly. 12/12 That is 1 % of rate of interest. Same formula of compound interest. and then after dividing the denominator with numerator , and then we’ll multiply that with n That’s it. If you still didn’t understand it, tell me in the comments below. i may make an another video I will upload a video today in the evening .It might be controversial. I hope you’ll support me. Okat friends(dosto) , with this, video ends. I hope you liked it. If any doubts , do ask me in the comments below. Like share and do tell me in the comments. Did you know how to calculate compound interest? do tell me If you haven’t seen that NUT video. You can check how do we calculate interest. Here we talked about compound interest. That we invested 1000rs in 1 year. How much will i get after 10 years. But if we are investing 1000 rs every year Interest will keep on increasing. How do we calculate that Whether it’s profitable for you or not? We’ve talked about this in that video NUT Bye Goodnight Goodmorning Goodafternoon whenever you are watching this video.