ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Total Amount
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Account
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Algebra
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Nothing
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Detailed explanation-1: -A = amount. P = principal. r = rate of interest. n = number of times interest is compounded per year.
Detailed explanation-2: -Compound interest, can be calculated using the formula FV = P*(1+R/N)^(N*T), where FV is the future value of the loan or investment, P is the initial principal amount, R is the annual interest rate, N represents the number of times interest is compounded per year, and T represents time in years.
Detailed explanation-3: -How Compound Interest Works. Compound interest is calculated by multiplying the initial principal amount by one plus the annual interest rate raised to the number of compound periods minus one. The total initial amount of the loan is then subtracted from the resulting value.
Detailed explanation-4: -Total interest is the sum of all interest paid over the life of a loan or interest-bearing account, including compounded amounts on unpaid accumulated interest. It can be derived using the formula [Total Loan Amount] = [Principle] + [Interest Paid] + [Interest on Unpaid Interest].
Detailed explanation-5: -Monthly Compound Interest Formula. Interest compounded monthly is calculated 12 times in a year. Compounded Quarterly Formula. Interest compounded quarterly is calculated four times in a year. Daily Compound Interest Formula. Annual Compound Interest Formula. 15-Jul-2021