= [P (1 + i)n] – P
= P [(1 + i)n – 1]
Compound Interest = Total amount of Principal and Interest in future (or Future Value) less Principal amount at present (or Present Value)
Monday, March 3, 2014
Compound Interest
Compound Interest
![]()
Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. Compound interest can be thought of as “interest on interest,” and will make a deposit or loan grow at a faster rate than simple interest, which is interest calculated only on the principal amount.
= [P (1 + i)n] – P
= P [(1 + i)n – 1]
![]()
Compound Interest = Total amount of Principal and Interest in future (or Future Value) less Principal amount at present (or Present Value)
= [P (1 + i)n] – P
= P [(1 + i)n – 1]
Compound Interest = Total amount of Principal and Interest in future (or Future Value) less Principal amount at present (or Present Value)
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment