Question

Which of the following correctly represents the expression for compound interest?

• A. C.I = [$P\times (1+\frac{R}{100}{)}^n$] + P
• B. C.I = [$P\times (1-\frac{R}{100}{)}^n$] - P
• C. C.I = [$P\times (1+\frac{R}{100}{)}^n$] - P
• D. C.I = [$P\times (1-\frac{R}{100}{)}^n$] + P

Answer 1

The correct option is C

C.I = [$P\times (1+\frac{R}{100}{)}^n$] - P

The correct expression is

C.I = [$P\times (1+\frac{R}{100}{)}^n$] - P

Where A = amount invested

R = Rate of interest per annum
n = Number of years