Formulae Usage On Simple And Compound Interest


We have discussed about Simple And Compound Interest using 2 case studies previously based on concepts understanding. Now we have introduced formulaes which will make your calculation faster and easier :)

To find the Total Amount based on Simple Interest, this is the formuale you can use:
A_n=P(1+\frac{r}{100}n)

An : Total Amount after n years

P: Original Principal Amount

r: Simple Interest Rate

n: Number of Years

To find the Total Amount based on Compound Interest, this is the formuale you can use:
A_n=P(1+\frac{r}{100})^n<br>

An : Total Amount after n years

P: Original Principal Amount

r: Compound Interest Rate

n: Number of Years

Apply these formulaes to the case studies we have discussed, did you get the same answer?

Congrats!Now you have 2 different approaches, the formulae way or the conventional way to solve all Interest questions.

Keep using the strategies learnt so that you get better and better.

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