What is Compound Interest?
Answers were Sorted based on User's Feedback
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 |
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 |
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 |
Answer / ramesh9
Equity of share holder in a subsidiary company is called
compound interest.
Is This Answer Correct ? | 2 Yes | 11 No |
What is difference between Cash Flow and fund flow
What will be the entry in book, stock get destroyed in fire Of rs. 1, 00,000/- in two circumstances?
Suppose we are getting a TDS Certificate from our vendor's how can enter the same in our books.
what are the items falling under the category of reserves and surplus? whether bills of exchange is a reserves and surplus item 2.whther errors of omission will affect the trial balance
Financial Accounting
0 Answers Chartered Accountant,
Why in KE5Z report in SAP Accounting Data not found?
The real meaning of Purchase
how will be the entry of outstanding salaries in receipt & payment account, income & expenditure & balance sheet
Your grandfather is 75 years old. He has total savings of Rs.80,000. He expects that he live for another 10 years and will like to spend his savings by then. He places his savings into a bank account earning 10 per cent annually. He will draw equal amount each year- the first withdrawal occurring one year from now in such a way that his account balance becomes zero at the end of 10 years. How much will be his annual withdrawal?
WHAT IS TAX ? WHY SHOULD PAY TAX?WHAT IS THE NEED FOR PAYING TAX?
What is the Technology used to carry out trades? Pls Tell me as early as possible.
what is entry for depriciation