COMPOUND

INTEREST

PRESENTED
BY:
D. RAVI
KIRAN
220415140021
MEANING
Compound interest is the addition of interest to
the principal sum of a loan or deposit, or in
other words, interest on principal plus interest.
It is the result of reinvesting interest, or adding
it to the loaned capital rather than paying it out,
or requiring payment from borrower, so that
interest in the next period is then earned on the
principal sum plus previously accumulated
interest. Compound interest is standard in 
finance and economics.
FORMULA :-
 COMPOND INTEREST PERIODICALLY

Compound interest occurs when interest is added

periodically, rather than all at once at the end of
the term. Once the interest is added to the
account balance, that interest begins accruing
additional interest.

With monthly compounding, for example, the stated annual

interest rate is divided by 12 to find the periodic (monthly)
rate, and the number of years is multiplied by 12 to determine
the number of (monthly) periods.
 THE BOTTOM
LINE
The long-term effect of compound interest on
savings and investments is indeed miraculous.
Because it grows your money much faster than
simple interest, it is a central factor in
increasing wealth. It also mitigates a rising cost
of living caused by inflation, as it will almost
certainly outpace it.
For young people especially, compound interest
is a godsend, as they have the most time ahead
of them in which to save
THANK
YOU