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What is the equation to find compound interest?
If the rate of annual interest is r% the period is n years and the amount invested is y Then the compound interest is y*(1+r/100)^n - y
What is compound interest of 1500 dollars for 5 years at interest of 5 percent?
Compound interest functions can be represented as [(1+i)^t]*n, where i = interest rate t = time n = original number [(1.05)^5]*1500 = $1914.42
What are the major differences between compound interest loan and simple interest loan?
With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.
What are some of the uses of compound interest in business?
compound interest increases interest more than simple interest
How do you solve compound interest question with example?
Compound Interest is the interest which gets compounded in Specified time periods.. The formula for solving Compound Interest problems is as follows: A=P(1+R/100)n Where, A= Amount after Including Compound Interest P= Principle R= Rate % n= Time Period For Calculating Compound Interest: CI=A-P Where, CI= COmpound Interest A= Amount P= Principle For Eg: If Rs 1000 is lend @ 10% Compounded Anually for 2 years, then calculation will be done as follows: A= 1000 (1+10/100)2 = 1000 (1.1)2 = Rs 1210 & Compound Interest will be A-P i.e. Rs 1210-1000= Rs 210. Also, Whenever Compounded Half Yearly or Compounded Quarterly is given, the rate will be divided by 2 & 4 respectively & time period will be multiplied by 2 & 4 respectively. For Eg: if in the above eg, Compounded Half yearly is given, then take R= 5%, n = 4 years (4 half years in 2 years) & if Compounded Quarterly is given, then, take R= 2.5%, n= 8 (8 quarters in 2 years)
