Define simple and compound interest

[ahwriter]

Define simple and compound interest?

[Aakanksha]

Answer: If the interest on a sum borrowed for a certain period is reckoned uniformly, then it is called simple interest. Let Principal= ‘P’, Rate=R% per annum, and Time= ’T’ years then
Simple interest =((P*T*R)/100)
Compound interest: The formula for calculating compound interest is:
Amount=P(1+R/100)n
P= principal amount (the initial amount you borrow or deposit)
R = annual rate of interest (as a decimal)
T = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year

• This reply was modified 9 years ago by Aakanksha.

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