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formula of compound interest
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Answer Posted / rishabh8888
If the interest is compounded once a year:
A = P(1 + r)n
If the interest is compounded q times a year:
A = P(1 + r/q)nq
Where,
P is the principal (the money you start with, your first
deposit)
r is the annual rate of interest as a decimal (5% means r =
0.05)
n is the number of years you leave it on deposit
A is how much money you've accumulated after n years,
including interest.
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