what is compound interest
Answers
Answered by
3
Answer:
Step-by-step explanation:
it is the addition of interest to the principal or sum of a loan or a deposit.
in simple words, it is interest on interest
hope it helps you
Answered by
0
Answer:
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.
A = final amount
P = initial principal balance
r = interest rate
n = number of times interest applied per time period
t = number of time periods elapsed
Similar questions