What is Compound Interest?

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What is Compound Interest?..

Answer / gopi

it means every year we have to add the accumulated interest
to the total principle amount, then we again we have to
calculate the ineterst for that year.

Is This Answer Correct ?    11 Yes 2 No

What is Compound Interest?..

Answer / h.r. sreepada bhagi

There are two concepts - Simple interest and Compound
interest. Simple interest is the interest calculated on the
base amount, where as Compound interest refers to Interest
on the Interest earned in the previous period. It's
illustrated below :

Amount of Fixed Deposit for 3 years receivable on maturity -
Rs. 100000 @10% interest calculated annually.

1st year interest Rs.10000/- Simple Interest.
2nd year interest Rs.11000/- Compound Interest.
3rd year interest Rs.12100/- Compound Interest.

The depositor will get Rs.133100/- at the end of 3 years on
maturity of the deposit. Int eh 2nd & 3rd year interest is
calculated on the previous years interest also & it's called
compounding.

Is This Answer Correct ?    8 Yes 0 No

What is Compound Interest?..

Answer / santosh

the compound interest is the interest on the interest for
the amount taken as loan

Is This Answer Correct ?    4 Yes 0 No

What is Compound Interest?..

Answer / ramesh9

Equity of share holder in a subsidiary company is called
compound interest.

Is This Answer Correct ?    2 Yes 11 No

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