Mathematics
Compound Interest
Calculate compound interest compounded annually.
A = P(1 + R/100)^T; CI = A - P
Formula Explanation
Interest is added to the principal after each compounding period.
Variables Explained
A = Amount; P = Principal; R = Annual rate in percent; T = Years.
Solved Example
Find CI on ₹1,000 at 10% per annum for 2 years.
A = 1000(1.1)^2 = ₹1,210. CI = ₹210.