Formula Of Compound Interest With Example. In the case of compound interest, interest is earned not only on the principal amount, which is invested initially. It is the result of reinvesting interest, rather than paying it out.
Simple And Compound Interest Formulae Concepts And Shortcuts Bankexamstoday from 3.bp.blogspot.com Essentially, compound interest is the interest on the interest! Compound interest is interest earned on money that was previously earned as interest. The compound interest formula calculates the amount of interest earned on an account or investment where the amount earned is reinvested.
The formula for calculating compound interest in a year is continuing with the simple interest example, what would be the amount of interest if it is charged on a compound basis?
Learn about the compound interest topic of maths in detail on vedantu.com. Example calculation of compound interest. This has been a guide to the compound interest example. To calculate compound interest use the formula below.
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