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:
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:
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.