The formula for calculating compound interest in a year is: Compound Interest = Total amount of Principal and Interest in future (or Future Value) less the Principal amount at present called Present Value (PV). PV is the current worth of a future sum of money or stream of cash flows given a specified rate of return.
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A= P(1+R/100)n this is when compounded annually
A=P(1+R/200)2n this is compounded half yearly
Compound interest = Amount -principal
Full forms of the letter in the equation:
Where P= principal
R=rate of interest
n=time (no.of months or years)
A=amount
CI=compound interest
Hope this helps you
A=P(1+R/200)2n this is compounded half yearly
Compound interest = Amount -principal
Full forms of the letter in the equation:
Where P= principal
R=rate of interest
n=time (no.of months or years)
A=amount
CI=compound interest
Hope this helps you
- 0
Compound interest = amount - principal
when the rate of interest is compounded annually, then amount = P (1 + R/ 100)n
when the rate of interest is compounded half-yearly, then amount = P (1+ R/200)2n
when the rate of interest is compounded quarterly, then amount = P (1+ R/400)4n
when the rate of interest is compounded annually, then amount = P (1 + R/ 100)n
when the rate of interest is compounded half-yearly, then amount = P (1+ R/200)2n
when the rate of interest is compounded quarterly, then amount = P (1+ R/400)4n
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= | final amount | |
= | initial principal balance | |
= | interest rate | |
= | number of times interest applied per time period | |
= | number of time periods elapse |
- 0
A= P(1+R/100)n this is when compounded annually
A=P(1+R/200)2n this is compounded half yearly
Compound interest = Amount -principal
Full forms of the letter in the equation:
Where P= principal
R=rate of interest
n=time (no.of months or years)
A=amount
CI=compound interest
Hope this helps you
A=P(1+R/200)2n this is compounded half yearly
Compound interest = Amount -principal
Full forms of the letter in the equation:
Where P= principal
R=rate of interest
n=time (no.of months or years)
A=amount
CI=compound interest
Hope this helps you
- 0