Question

What is compound intrest? Give its formula with correct nomenclature.​
The one who gives correct answer will be followed by me :):)

Answer 1

The compound interest formula is ((P*(1+i)^n) - P), where P is the principal, i is the annual interest rate, and n is the number of periods

Answer 2

Step-by-step explanation:

Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Thought to have originated in 17th-century Italy, compound interest can be thought of as "interest on interest," and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount.

The formula for calculating the amount of compound interest is as follows:

Compound interest = total amount of principal and interest in future (or future value) less principal amount at present (or present value)

= [P (1 + i)n] – P

= P [(1 + i)n – 1]

Where:

P = principal

i = nominal annual interest rate in percentage terms

n = number of compounding periods