Question

Compound Interest Formula

$A=P{\left(1+\frac{r}{100}\right)}^t$

Answer 1

Amount formula is given by $A=P{\left(1+\frac{r}{100}\right)}^t$

The compound interest is calculated, after calculating the total amount over a period of time, based on the rate of interest, and the initial principal.

Here initial principal$=P$

New principal sum or the total amount$=A$

Rate of interest per annum$=r\%$

The time period in years $=t$

Frequency of the number of times the interest is compounded annually = n

Compound interest, $C.I.=A-P$