What is Compound Interest : CI
Compound Interest is the Interest, it is the addition of Interest to Principal Sum .When a Interest of some Principal sum is not paid at specified time and the same Interest is reinvested / calculated with Principal Sum for next period Interest. Then, Total Interest for whole period is called ''Compound Interest''.
Compound interest may be contrasted with simple interest, where interest is not added to the principal, so there is no compounding. The simple annual interest rate is the interest amount per period, multiplied by the number of periods per year.
Some Important Formula for calculating Compound Interest
Some Important points for calculating Compound Interest
* When Interest is applicable half yearly, then Rate will become half and the Time will become double.
Compound Interest is further explained as follows:-
Exercises related to Compound Interest for further learning and practices are appended below:-