Accountancy, asked by jeniangel6041, 1 year ago

The compound interest on a certain sum for 2years at 10%

Answers

Answered by amritanshu6
0
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]

(Where P = Principal, i = nominal annual interest rate in percentage terms, and n = number of compounding periods.)

Take a three-year loan of $10,000 at an interest rate of 5% that compounds annually. What would be the amount of interest?  In this case, it would be: $10,000 [(1 + 0.05)3 – 1] = $10,000 [1.157625 – 1] = $1,576.25.



PLEASE MARK MY ANSWER AS A BRAINLIEST ANSWER.
Similar questions