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
well, we know the common difference is -3, to go from the 4th term to the 8th term, we need to add "d" 4 times or namely 3+4(-3), likewise to go from the 13th term to the 19th term we have to add "d" 6 times, or namely -24 + 6(-3).