what is compound interest!?? Plz answer fast!!
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it is the addition of interest to the principal sum of a loan or deposit .
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Money is said to be lent at compound interest, when the interest, which has become due at the end of a certain fixed period is not paid to the money lender, but it is added to the sum lent.The amount thus obtained becomes the principal for the next period.This process is repeated until the amount for the last period is found.
The difference between the final amount and the original principal is the required compound interest.
Compound interest= Final amount-Original amount
I.e C.I=A-P
The difference between the final amount and the original principal is the required compound interest.
Compound interest= Final amount-Original amount
I.e C.I=A-P
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