Study Material for SSC CGL, CHSL, MTS, Prasar Bharti, FCI Exams : Compound Interest

Compound Interest

In compound interest, the interest is added to the principal at the end of each period and the amount thus obtained becomes the principal for the next period. The process is repeated till the end of the specified time.

If P = Principal,

R = Rate per cent per annum

Time = Number of years,

CI = Compound Interest

A = Amount. Then,

When the interest is compounded annually