Choosing The Best Investment For You. Must watch videos for CAT SSC CGL IBPS. The compound interest formula solves for the future value of the investment.
To use the compound interest formula you will need figures for principal amount annual interest rate time factor and the number of compound periods.
You figure simple interest on the principal which is the amount of money borrowed or on deposit using a basic formula. This investment acts as passive income and as long as you stick to publicly traded companies you can benefit from this investment long-term. Option C it is. The Rule of 72 is another way to make estimates about compound interest quickly.