The formula compound Interest as,
P => Principal Amount or Base
Amount
r => Annual Rate of Interest
t => Number of Years.
A=> Accumulated Money after (n)
years with including Interest.
n => Compound Interest Interval(Daily, Quarterly,
Half yearly, Yearly).
For example,
Q.)
An amount of $2,000 is deposited in a bank paying an annual interest rate of
14%, compounded yearly. What is the balance after 5 years?
Ans.)
a)
Principal amount: $2,000
b)
Interest Rate: 14%
c)
Effective Annual Rate: 14%
d)
Calculation Period: 5 years
P = 2000, r = 14/100 = 0.14, n = 1, t = 5. Accordingly,
The Balance after 5 years is approximately $3,850.83.
For live result, go link,
|
Anil Singh is an author, tech blogger, and software programmer. Book writing, tech blogging is something do extra and Anil love doing it. For more detail, kindly refer to this link..
|
