Compound Interest


Compound interest arises when interest is added to the principal of a deposit or loan. So that, from that moment on, the interest that has been added also earns interest. This addition of interest to the principal is called compound Interest. Following are the important formulas to calculate compound Interest. Let Principal = P, Rate = R% per annum, Time = n years When interest is compound Annually: Amount = P {1 + R/100}n When interest is compounded Half-yearly: Amount = P [...]