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:
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 6 years, 8 months ago by Aakanksha.