What is compound interest
2 answers:
Answer:
The best and easily understandable definition of compound interest is the interest which is calculated on the initial principal amount (starting deposit amount) and also on the earned interest of previous periods. The interest is always added to the previous principal to make a new principal for current period. The formula for the compound interest is =
Here, P is principal
r = rate at which interest is calculated
n = number of times interest is compounded in a year
t = number of years for which one has to calculate the compound interest.
You might be interested in
Answer:
0.231
Step-by-step explanation:
Let the Probability of students that knew the correct answer be: P(A)
P(A) = 60% = 0.6
Let the Probability that the student picked the wrong answer even if he/she knows the right answer be: P(B)
P(B) = 15% =0.15
Let the Probability of the student that do not knew the correct answer Be P(C)
P(C) = 1 - P(A)
P(C) = 1 - 0.6
P(C) = 0.4
Let the Probability that the student does not know the right answer but guessed it correctly be: P(D)
P(D) = 25% = 0.25
Let the Probability that the student picked the right answer even if he/she knows the right answer be: P(E)
P(E) = 1 - P(B)
P(E) = 1 - 0.15
P(E) = 0.85
Probability that the student got the answer wrong = (0.60 X 0.15) + (0.40 X 0.75) = 0.39
P( Student knew answer given he answered wrong) =
=
=
= 0.23076923077
= 0.231