Thursday, March 28, 2013

Interest

There are two types of Interest, simple interest and compound interest.

Main points to remember while calculating interest

The formula for calculating simple interest is I = PNR
where I is the interest, P is the principal amount , N is the number of years and R is the rate of interest.

The formula for calculating compound interest is A = P (1+r/100)n (raise to n)
where A is the amount, P is the principal amount, 'r' , rate of interest and 'n' is the number of years. 

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