what is compound interest ?
give all formula related to it !
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Compound interestis 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 interestin the next period is then earned on the principal sum plus previously-accumulated interest.
formula for compound intetest is:
Formulas where n = 1 (compounded once per period or unit t)
Calculate Accrued Amount (Principal + Interest) A = P(1 + r)tCalculate Principal Amount, solve for P. P = A / (1 + r)tCalculate rate of interest in decimal, solve for r. r = (A/P)1/t - 1.Calculate rate of interest in percent. ...Calculate time, solve for t.
formula for compound intetest is:
Formulas where n = 1 (compounded once per period or unit t)
Calculate Accrued Amount (Principal + Interest) A = P(1 + r)tCalculate Principal Amount, solve for P. P = A / (1 + r)tCalculate rate of interest in decimal, solve for r. r = (A/P)1/t - 1.Calculate rate of interest in percent. ...Calculate time, solve for t.
abhi178:
what you write dear !!! this is not a simple , way also n = 1 what i s this use standard formula , definition okay
sorry
Answered by
3
Compound Interest
________________
When the interest compounded at regular intervals.Then its called compound interest.
Formulas
__________
●A = P (1 + r/100)^n [ Here A is the total amount, r is the rate of interest and n is the time]
This formula is used when the interest is compound yearly.
compound interest = Total amount - principal
●A = P( 1+ r/2/100)^2n
If the compound interest is in intervals of six months.
● A = P (1+ r/4/100)^4n
If the interest is compound quarterly.
●If the rate of interest (r) is different each year then the formula will be
A = P ( 1+ r1/100) (1+ r2/ 100) (1+ r3/100)
[Here the Amount is of 3 years.The rate of interest in first year is r1, the rate next year is r2 and the rate of interest in third year is r3]
Hope it helps.
________________
When the interest compounded at regular intervals.Then its called compound interest.
Formulas
__________
●A = P (1 + r/100)^n [ Here A is the total amount, r is the rate of interest and n is the time]
This formula is used when the interest is compound yearly.
compound interest = Total amount - principal
●A = P( 1+ r/2/100)^2n
If the compound interest is in intervals of six months.
● A = P (1+ r/4/100)^4n
If the interest is compound quarterly.
●If the rate of interest (r) is different each year then the formula will be
A = P ( 1+ r1/100) (1+ r2/ 100) (1+ r3/100)
[Here the Amount is of 3 years.The rate of interest in first year is r1, the rate next year is r2 and the rate of interest in third year is r3]
Hope it helps.
good explanation
Thanks for marking it as brainliest^_^
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