Put simply compound interest changes the amount of money in the bank each time and a new calculation has to be worked out. Previous IncreasingDecreasing by a Percentage Practice Questions. Next Percentages of an Amount Calculator Practice Questions.
Money is said to be lent at compound interest when at the end of a year or other fixed period the interest that has become due is not paid to the lender but is added to the sum lent and the amount thus obtained becomes the principal in the next year or period.
During the second year also find the compound interest. Model answers video solution for Compound Interest. Derrick has 10 000 he wants to invest. SI and CI Practice Questions form a bulk of many competitive examination papers.