Question

How to calculate compound interest?

Answer 1

Calculate compound interest:

Compound interest is the interest calculated on the principal and the interest accumulated over the previous period.

The formula of compound interest $\mathrm{CI}=\mathrm{A}-\mathrm{P}=\mathrm{P}{(1+\frac{\mathrm{r}}{100})}^{\mathrm{n}}-\mathrm{P}$

$\mathrm{A}$$=$Amount

$\mathrm{P}$ $=$Principal

$\mathrm{r}$ $=$ rate of interest

$\mathrm{n}$ $=$time in years

Hence, the formula for calculating compound interest is given.