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compound interest formula in maths with example. When buying on credit you have to borrow money to pay for the object meaning you will have to pay more for it due to the interest on the loan. A sum of Rs.
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M number of the times compounded annually 1. Let us substitute the given data in the compound interest formula. Generalize the formula to any number of periods.
A deposit of 495 earns 3 interest compounded annually.
Nowthe calculation of future value A can be done as follows. This formula makes use of the mathemetical constant e. From the formula for compound interest we know CI P1R100 t P. This is different from compound interest where interest is calculated on on the initial amount and on any interest earned.
