Question

What is compound interest?Explain in detail.

Answer 1

compound interest calculated by multiplying principal value by one plus the annual interest rate raised to total number of compound minus one .the total initial amount of loan is subtracted from resulting value ...

compound interest = [p(1 + i )^ n ]
= p [ ( 1+ i ) ^n - 1 ]

Answer 2

Compound interest is calculated by multiplying the initial principal amount by one plus the annual interest rate raised to the number of compound periods minus one.

According to formula,

to formula,An = P( 1 +r/100)

to formula,An = P( 1 +r/100)Where A is total amount after n years, r is the rate. P is the amount initially

to formula,An = P( 1 +r/100)Where A is total amount after n years, r is the rate. P is the amount initiallyAn =10, 000( 1 + 10/100)

to formula,An = P( 1 +r/100)Where A is total amount after n years, r is the rate. P is the amount initiallyAn =10, 000( 1 + 10/100)=10,000( 1+0.1)"

to formula,An = P( 1 +r/100)Where A is total amount after n years, r is the rate. P is the amount initiallyAn =10, 000( 1 + 10/100)=10,000( 1+0.1)"=10,000(1.1)

to formula,An = P( 1 +r/100)Where A is total amount after n years, r is the rate. P is the amount initiallyAn =10, 000( 1 + 10/100)=10,000( 1+0.1)"=10,000(1.1)An =10,000(1.1)

to formula,An = P( 1 +r/100)Where A is total amount after n years, r is the rate. P is the amount initiallyAn =10, 000( 1 + 10/100)=10,000( 1+0.1)"=10,000(1.1)An =10,000(1.1)now, put n = 1 A1 =10, 000(1.1), put n =2, A2 =10,000(1.1)2

to formula,An = P( 1 +r/100)Where A is total amount after n years, r is the rate. P is the amount initiallyAn =10, 000( 1 + 10/100)=10,000( 1+0.1)"=10,000(1.1)An =10,000(1.1)now, put n = 1 A1 =10, 000(1.1), put n =2, A2 =10,000(1.1)2in the same way, A3 =10, 00(1.1)

to formula,An = P( 1 +r/100)Where A is total amount after n years, r is the rate. P is the amount initiallyAn =10, 000( 1 + 10/100)=10,000( 1+0.1)"=10,000(1.1)An =10,000(1.1)now, put n = 1 A1 =10, 000(1.1), put n =2, A2 =10,000(1.1)2in the same way, A3 =10, 00(1.1)you can see that A2/A1 = A3/A2

to formula,An = P( 1 +r/100)Where A is total amount after n years, r is the rate. P is the amount initiallyAn =10, 000( 1 + 10/100)=10,000( 1+0.1)"=10,000(1.1)An =10,000(1.1)now, put n = 1 A1 =10, 000(1.1), put n =2, A2 =10,000(1.1)2in the same way, A3 =10, 00(1.1)you can see that A2/A1 = A3/A2so, {An} is in Geometric progression.

to formula,An = P( 1 +r/100)Where A is total amount after n years, r is the rate. P is the amount initiallyAn =10, 000( 1 + 10/100)=10,000( 1+0.1)"=10,000(1.1)An =10,000(1.1)now, put n = 1 A1 =10, 000(1.1), put n =2, A2 =10,000(1.1)2in the same way, A3 =10, 00(1.1)you can see that A2/A1 = A3/A2so, {An} is in Geometric progression.now,

to formula,An = P( 1 +r/100)Where A is total amount after n years, r is the rate. P is the amount initiallyAn =10, 000( 1 + 10/100)=10,000( 1+0.1)"=10,000(1.1)An =10,000(1.1)now, put n = 1 A1 =10, 000(1.1), put n =2, A2 =10,000(1.1)2in the same way, A3 =10, 00(1.1)you can see that A2/A1 = A3/A2so, {An} is in Geometric progression.now,amount payable after 5years

to formula,An = P( 1 +r/100)Where A is total amount after n years, r is the rate. P is the amount initiallyAn =10, 000( 1 + 10/100)=10,000( 1+0.1)"=10,000(1.1)An =10,000(1.1)now, put n = 1 A1 =10, 000(1.1), put n =2, A2 =10,000(1.1)2in the same way, A3 =10, 00(1.1)you can see that A2/A1 = A3/A2so, {An} is in Geometric progression.now,amount payable after 5yearsA5 =10,000(1.1)^5

to formula,An = P( 1 +r/100)Where A is total amount after n years, r is the rate. P is the amount initiallyAn =10, 000( 1 + 10/100)=10,000( 1+0.1)"=10,000(1.1)An =10,000(1.1)now, put n = 1 A1 =10, 000(1.1), put n =2, A2 =10,000(1.1)2in the same way, A3 =10, 00(1.1)you can see that A2/A1 = A3/A2so, {An} is in Geometric progression.now,amount payable after 5yearsA5 =10,000(1.1)^5=16, 105.1 Rs