TalentSprint Aptitude Prep channel is designed to help aspirants get ready for various competitive exams including Bank SSC Railways Insurance Campus Rec. Compound interest calculated by multiplying the original principal amount one plus the annual interest. The difference between the two is that simple interest is a fixed amount of interest.
Mathbf P 1 frac r nn P 1 nr.
From second month the interest starts changing. COMPOUND INTEREST FORMULA A P 1 r n n t Where A is the account balance P the principal or starting value r the annual interest rate as a decimal n the number of compoundings per year and t the time in years. How much money is in the bank after for 4 years. How To Solve Quickly Compound Interest Definition of Compound Interest Compound interest is the interest calculated on the original principal and on the accumulated past interest of a deposit.