Question

Which of the following is the correct formula to calculate the amount in case of Compound Interest?

• A. $A=P(1+\frac{r}{100}{)}^t$
• B. $A=P(1-\frac{r}{100}{)}^t$
• C. $A=P(1+rt)$
• D. None of the above

Answer 1

The correct option is A $A=P(1+\frac{r}{100}{)}^t$

For a principal P, rate of interest r and time t,
the amount A, when compounded annually, is given by

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