n = number of times interest is compounded per year
t = time (in years)
Alternatively, we can write the formula as given below:
CI = A – P
And
CI=(P*(1+r/n)^nt)-P
This formula is also called periodic compounding formula.
Here,
A represents the new principal sum or the total amount of money after compounding period
P represents the original amount or initial amount
r is the annual interest rate
n represents the compounding frequency or the number of times interest is compounded in a year
t represents the number of years
It is to be noted that the above formula is the general formula for the number of times the principal is compounded in a year. If the interest is compounded annually, the amount is given as:
A = P*(1 +R/100)^t
Thus, the compound interest rate formula can be expressed for different scenarios such as the interest rate is compounded yearly, half-yearly, quarterly, monthly, daily, etc.
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Verified answer
A=P*( 1+r/n)^nt
Where,
A = amount
P = principal
r = rate of interest
n = number of times interest is compounded per year
t = time (in years)
Alternatively, we can write the formula as given below:
CI = A – P
And
CI=(P*(1+r/n)^nt)-P
This formula is also called periodic compounding formula.
Here,
A represents the new principal sum or the total amount of money after compounding period
P represents the original amount or initial amount
r is the annual interest rate
n represents the compounding frequency or the number of times interest is compounded in a year
t represents the number of years
It is to be noted that the above formula is the general formula for the number of times the principal is compounded in a year. If the interest is compounded annually, the amount is given as:
A = P*(1 +R/100)^t
Thus, the compound interest rate formula can be expressed for different scenarios such as the interest rate is compounded yearly, half-yearly, quarterly, monthly, daily, etc.
hope this helps u