Forums Math Assignment Help Define simple and compound interest

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    Define simple and compound interest?


    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 8 years, 8 months ago by Aakanksha.
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