# Compound Interest Formula

\[\large Compound\;Interest=P\left ( 1+\frac{R}{100}\right)^{T} – P\]

Where,

P = Principal

R = Rate

T = Time

*Compound Interest can also be called as Amount (A)*

### Solved Examples

** Question 1: **A sum of Rs. 50,000 is borrowed and the rate of interest is 10%. What is the compound interest for 5 years?

**Solution:**

$Compound\;Interest=P\left ( 1+\frac{R}{100}\right)^{T} – P$

Here, P = 50,000 ; R = 10% ; T = 5 years ; A=?

$=50000\left ( 1+\frac{10}{100}\right)^{5} – 50000$$=80525.50 – 50000$

Compound Interest = 30525.50

The compound interest for 5 years is Rs. 30525.50

More topics in Compound Interest Formula | |

Daily Compound Interest Formula | onthly Compound Interest Formula |