Question

Formula of calculating compound and simple interest

Answer 1

Explanation:

For example, assume the principal is $100,000, the interest rate is 11 percent and the term is 2 years. The simple interest formula is I = P x R x T. Compute compound interest using the following formula: A = P(1 + r/n) ^ nt. ... Divide the interest rate by the number of compounding periods per year: 0.05/4 = 0.0125.

Answer 2

Answer:

compound interest = A - P

when A = p ( 1+ r /100)power t

simple interest = p×r×t /100

hope it will help you