Question

WHAT ARE COMPAUND INTEREST?? HOW TO SOLVE ITT???

Answer 1

The rate which is paid on any thing in a year .
P 1+r/100 t

Answer 2

Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.

Now that you are familiar with Simple Interest problems from our previous lessons on quickly finding interest rates and solving problems with different interest rates, we move on to compound interest problems. There may be questions asked in your Bank and Insurance as well as Placement exams where you have to find out Compound Interest given the Principal Amount, the time (or duration) and the Rate of Interest. You can use the formula to solve these types of problems. But what follows is the quickest way to solve compound interest problems. This will save about a minute of your time, allowing you to solve an extra question and boost your score and percentile.

The concept behind this calculation is Equivalent Rate of Interest.

I hope it helps you...