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Suppose the amount invested (or borrowed) is K,

Suppose the rate of interest is R% annually,

Suppose the amount accrues interest for Y years.

Then

the interest I is 100*K[(1 + R/100)^Y - 1]

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Q: What is the correct formula for compound interest?
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What is the formula for difference between simple interest and compound interest?

P(r/100)^2


How do you figure out your total amount of money after interest?

It depends on whether it is simple or compound interest. The formula for simple interest is A = P(1+rt), where A = amount of money after t years, P = Principal, or the amount of money you started with, and r = the annual interest rate, expressed as a decimal (i.e. 7% = 0.07). For compound interest, the formula is A = P(1+r)t.


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.


How much would you repay the bank if you borrowed 7900 at 4.3 percent annual interest for 6 years?

9,938.20 * * * * * That would be correct only if banks charged simple interest as opposed to compound interest. Anyone believe that likely? The correct answer, when interest is compounded, is 7900*(1.043)6 = 10170.28


What are some of the uses of compound interest in business?

compound interest increases interest more than simple interest