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What is the math definition of principal?
The "principal" is the sum of money invested or borrowed, before interest or other revenue is added, or the remainder of that sum after payments have been made. In math, this applies to finance.
You deposit 900 in a savings account that earns 4 percent interest compounded once a year after 2 years the second years interest has been added how much will be in the account?
$972.00From Superscot85: Above answer is for Simple Interest. You specifically stated "compound" so after 2 years balance will be 900 x (1.04)2 ie 973.44
What is a letter of interest?
its the way of showing interest in a job which has been advertised and you are willing to get
How does a compound interest differ from a simple interest?
Simple interest is interest that is compounded solely on what was originally owed. For example, say you owe $500 at 10% annual interest. This means that at the end of the year, you owe $50 dollars in interest (10% of 500) on top of the $500 you already owe. If you were to not pay it again, at the end of the second year you would owe $550 plus another $50 making the total amount you owe to be $600. No matter how long you wait to pay off the debt it will only increase by $50 every year, since that is 10% of the original amount owed. Compound interest in interest that is compounded on what what was originally owed PLUS any interest left over. Using the example above if the interest on the original $500 had been compound interest by the second year one would have owed $550 plus an additional $55 dollars in interest (10% of 550). This is the danger of compound interest as it always increases as long as the debt continues to be unpaid.
What was the total savings for 400 annual rate 6 percent 6 percent compounded semiannually?
The total grows as time passes. That's the whole idea of interest and compounding. In order to calculate what the total is now, we need to know how long it has been in the account accumulating interest, and you haven't told us that.
