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Crank
3 years ago
12

What is compound interest

Mathematics
2 answers:
Andrews [41]3 years ago
6 0
Is interest<span> calculated on the initial principal I think 



Best of luck hope I helped :3</span>
lapo4ka [179]3 years ago
3 0

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 =

P(1+\frac{r}{n})^{nt}

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.

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