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How to Calculate Simple and Compound Interest?

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تم إضافة السؤال من قبل Hazem Habra ACCA CMA CIA , Financial Controller , Qatar Basketball Fed - QOC
تاريخ النشر: 2014/01/22
Nasrin Haris
من قبل Nasrin Haris , Administrative Officer , IVS Global Services

Simple Interest = ( Principal amount * Rate of Interest )* Time

Compound Interest = FV = PV * (1+r)n

  • FV is future value (the total at the end of the period, for which you are solving)
  • PV is the present value (the amount deposited today)
  • r is the interest rate
  • n is the number of periods for which r is compounded 

mukkur srinivasan varadhan
من قبل mukkur srinivasan varadhan , Chartered Accountant , Chartered Accountant in practice

(A)Simple interest= PNR/100,where  P=Principal,

n=number of years

r=rate of interest .

(B) Compound Interest= {P(1+ r/100) to the power n}-P

having the expansion as above.

In Cmpound interest, interest is computed for interest also.

مستخدم محذوف‎
من قبل مستخدم محذوف‎

Simple intr=amount * Interest rate * the Time

Compound Interest = FV = PV * (1+r)n

  • n =the number of periods for which r is compoun
  • FV =future value (the total at the end of the period, for which you are solving)
  • PV =the present value (the amount deposited today)
  • r =the interest rate

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