Simple interest and compound interest
soumya last edited by
pankaj last edited by
Please mention the question no.
Sathya last edited by
@soumya Interest calculation needs three parts:1.principle (P), 2.number of years(N) and 3. rate of interest per year(R). Simple interest is obtained just by multiplying P,N,R. Since R is in percentage it should be divided by 100. So, SI=PNR/100. Whereas in compound interest, the interest is calculated for each year and it is added to the principle for the next year. i.e. 1st year CI=P.R/100, 2nd year CI will be added to P, so CI will be (CI+P).R/100.This is repeated for N years.