Tuesday 31 May 2016
Sunday 24 April 2016
Simple Interest & Compound Interest
Simple Interest.
It is the Interest where Interest remain same every year
Formula for Simple Interest = P*R*t
where P= principle =intial investment
R=rate=if in percentage convert it into point form by dividing with 100
t=time=sometimes also written as n=time in years or annum
The formula that can give you a final amount ....adding its simple interest is as follow
Compound Interest
Suppose in first year your Interest was 10% and next year it increase 10% more of that amount
suppose your P=100
then 1st year it gets CI=10 and A=100+10=110
Next year CI = 10 % of 110 not 100 as earlier .therefore A=211
Now this Non uniform interest rising is Known as Compound Interest
It is the Interest where Interest remain same every year
Formula for Simple Interest = P*R*t
where P= principle =intial investment
R=rate=if in percentage convert it into point form by dividing with 100
t=time=sometimes also written as n=time in years or annum
The formula that can give you a final amount ....adding its simple interest is as follow
Compound Interest
Suppose in first year your Interest was 10% and next year it increase 10% more of that amount
suppose your P=100
then 1st year it gets CI=10 and A=100+10=110
Next year CI = 10 % of 110 not 100 as earlier .therefore A=211
Now this Non uniform interest rising is Known as Compound Interest
In Actuarial Science Notations of the Formula Changes In order to relate Terms with many other formulas
Tuesday 19 April 2016
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