ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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add the principle
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subtract the principle
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multiply the principle
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leave it alone
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Detailed explanation-1: -How is compounded interest calculated? Compound interest is calculated by Subtracting the principal amount from the raise of the number of compound periods for the product of the initial principal amount by one plus the annual interest rate.
Detailed explanation-2: -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-3: -Divide the value of an investment after a compounding period by its value at the start of that period. Raise the result to an exponent of one divided by the number of years. Subtract one from the result. 24-Jun-2022