Question

what is compound interest
and formula of compound interest ​

Answer 1

Question :-

• What is Compound interest ?

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.

Formulas :-

$1 \: . \orange{ \boxed{ \Large\bold{Amount = P( 1 + \frac{Rate}{100} ) {}^{n(no. \: of \: years \: or \: time)} }}}$

• After that the second step is :-

$2 \: . \red{\boxed {\large \bold{ Amount \: - Principal}}}$

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