what is compound intrest
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Q.what is compound intrest
Compound interest is the interest paid on the original principal and on the accumulated past interest.
Examples:- If you start out with 100 dollars and you receive 10 dollars as interest at the end of the first period, you would have 110 dollars that you can earn interest on in the second period. So in the second period, you would earn 11 dollars interest. Now for the 3rd period, you have 110 + 11 = 121 dollars that you can earn interest on. So at the end of the 3rd period, you will have earned interest on the 121 dollars. The amount would be 12.10. So you now have 121 + 12.10 = 132.10 of which you can earn interest.
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