What is formula of Compound interest?

Question

Answer

Amount - principal

Answer

Amount -Principal

Answer

Amount - Priciple

Answer

Amount - primcipal

Answer

Amount-principal

Answer

Amount-principal

Answer

Amount-principal

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If P= Principal. .
R=Rate of interest (%) [compounded annually]..

T=Time (in yrs)

Then,Amount after certain time(T)

=P [ {1+(R/100)}^T ] ...

Now, C.I. = Amount - Principal. ..

Answer

Amount-principal

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A-P

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Amount-Principal

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Amount - principal is formula of compound interest

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AMOUNT - PRINCIPAL

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Compound interest =Amount - Principal

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Amount-principal

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Hey

Here is your answer

The formula of Compound Interest (C.I) is

Amount - Principal

Answer

Formula of Compound Interest:

The formula for calculating compound interest is given by:

A = P(1 + r/n)^(nt)

Where:
- A is the future value of the investment/loan, including interest
- P is the principal amount (the initial investment/loan)
- r is the annual interest rate (expressed as a decimal)
- n is the number of times that interest is compounded per year
- t is the number of years the money is invested/borrowed for

Explanation:

Principal Amount (P):
The principal amount refers to the initial investment or the initial amount borrowed. It is denoted by the letter 'P' in the formula.

Annual Interest Rate (r):
The annual interest rate is the rate at which the investment grows or the cost of borrowing money. It is expressed as a decimal value. For example, if the annual interest rate is 5%, it would be represented as 0.05 in the formula.

Number of Times Compounded per Year (n):
Compound interest can be compounded annually, semi-annually, quarterly, monthly, or even daily. The 'n' in the formula denotes the number of times the interest is compounded per year. For example, if the interest is compounded annually, 'n' would be 1. If it is compounded quarterly, 'n' would be 4.

Number of Years (t):
The number of years represents the duration for which the money is invested or borrowed. It is denoted by the letter 't' in the formula.

Future Value (A):
The future value is the total value of the investment or loan after the given period, including the interest earned. It is the amount you will have after the investment has grown or the loan has been repaid.

Visual Representation:

The formula can be visually represented as follows:

A = P(1 + r/n)^(nt)

Where:
- A represents the future value
- P represents the principal amount
- r represents the annual interest rate
- n represents the number of times compounded per year
- t represents the number of years

Example Calculation:

Let's consider an example to understand the compound interest formula better. Suppose you invest $1,000 at an annual interest rate of 5% compounded annually for a period of 3 years.

Using the compound interest formula:

A = P(1 + r/n)^(nt)
A = 1000(1 + 0.05/1)^(1*3)
A = 1000(1 + 0.05)^3
A = 1000(1.05)^3
A = 1000(1.157625)
A ≈ $1,157.63

Therefore, after 3 years, your investment would grow to approximately $1,157.63.

Conclusion:

The compound interest formula is a powerful tool for calculating the future value of an investment or loan, considering the principal amount, annual interest rate, compounding frequency, and duration. By utilizing this formula, individuals and financial institutions can determine the growth or cost of their investments or loans over time.

Answer

A-P

Answer

1. Calculate Accrued Amount (Principal + Interest) A = P(1 + r/n)nt
2. Calculate Principal Amount, solve for P. P = A / (1 + r/n)nt
3. Calculate rate of interest in decimal, solve for r. r = n[(A/P)1/nt - 1]
4. Calculate rate of interest in percent. R = r * 100.
5. Calculate time, solve for t.

Answer

P{1 r/100}to the power time -p

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