Compound interest
A=P(1+nr)nt
A=final amount
P=initial principal balance
r=interest rate
n=number of times interest applied per time period
t=number of time periods elapsed
Amount=Interest+Amount
=150+500=650
A=P(1+nr)nt
650=500(1+1r)1×6
1.3=(1+r)6
61.3=1+r=1.0446750
1.0446750−1=0.04467504.46750%
Simple interest
I=P×I×T
- P = Principal Amount
- I = Interest Amount
- r = Rate of Interest per year in
150=500×I×6150=3000II=0.050.05×100=5%
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