Question

3. What is the formula of amount in finding compound interest?
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Answer 1

Answer:

The formula for compound interest is P (1 + r/n)^(nt), where P is the initial principal balance, r is the interest rate, n is the number of times interest is compounded per time period and t is the number of time periods.

Answer 2

Answer:

Compound interest = total amount of principal and interest in future (or future value) less principal amount at present (or present value)

= [P (1 + i)n] – P

= P [(1 + i)n – 1]

Step-by-step explanation:

Where:

P = principal

i = nominal annual interest rate in percentage terms

n = number of compounding periods

I hope this helps you