Question

What is the formular for compound interest​

Answer 1

Compound interest is the interest imposed on a loan or deposit amount.

The most commonly used concept in our daily existence is compound interest.

The compound interest for an amount depends on both Principal and interest gained over periods.

Formula to calculate compound interest.

`{ \boxed{ \rm{C.I = P \bigg(1 + (r)/(n) \bigg) ^(nt) - P}}}`

Here,

P is Principal

r is rate of interest

t is total time span.

n is number of times interest got compounded annually.