Question

what is the meaning of compound interest​

Answer 1

Answer:

A interest calculated on initial principle.

Step-by-step explanation:

Which also includes all the accumulated interest, from previous period on a deposit or loan.

Answer 2

Answer:

A compound interest is a particular type of interest in which periodic intersect rates are computed again and again on the increasing principal amounts.

For example,

if x is your invested amount.

and, y is the amount obtained by simple interest.

then, the principal amount for next cycle is ( x + y ).

Further, you can consider the below given formula for CI ( compound interest )

$\LARGE{CI _{yearly} = \left[ P { \left( 1 + \frac{R}{100} \right) }^{T} - P \right] }$ ,

where,

P = principle amount

R = rate of interest

T = time taken (in years)