fomula of compound interest and one example
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Answered by
8
Answer:
The compound interest is calculated, after calculating the total amount over a period of time, based on the rate of interest, and the initial principal. For an initial principal of P, rate of interest per annum of r, time period t in years, frequency of the number of times the interest is compounded annually n.
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In the above expression,
- P is the principal amount
- r is the rate of interest(decimal)
- n is frequency or no. of times the interest is compounded annually
- t is the overall tenure.
Step-by-step explanation:
Hope it helps you ♥
Good night sweet dreams sonali
Answered by
5
Step-by-step explanation:
Let's say your goal is to end up with $10,000 in 5 years, and you can get an 8% interest rate on your savings, compounded monthly. Your calculation would be: P = 10000 / (1 + 0.08/12)(12×5) = $6712.10
Hi Sonali di
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