Simple against compound on a deposit
2,00,000 placed for 3 years at 7.5%, compounded quarterly.
- Principal
- 2,00,000
- Rate
- 7.5% a year
- Period
- 3 years
- Compounding
- Quarterly
Result. Simple interest gives 45,000. Quarterly compounding gives 49,943.28, so compounding is worth 4,943.28 over the three years.