What is Compound interest?
Money is said to be lent at compound interest (C.I).if the interest is not paid as soon as falls due,but is added to the Principle after a fixed period,so that the amount at the end of period becomes the principal for the next period.If a is the amount,C.I(compound interest) is the compound interest,p is the principle ,R is the Rate,and t is the time,then
Note:
If interest is paid half yearly;time is doubled,and the rate is halved.
Compound interest(C.I) for one year is equal to the simple interest for one year.
Money is said to be lent at compound interest (C.I).if the interest is not paid as soon as falls due,but is added to the Principle after a fixed period,so that the amount at the end of period becomes the principal for the next period.If a is the amount,C.I(compound interest) is the compound interest,p is the principle ,R is the Rate,and t is the time,then
If interest is paid half yearly;time is doubled,and the rate is halved.
Compound interest(C.I) for one year is equal to the simple interest for one year.
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