Compound interest is when a bank pays interest on both the principal the original amount of moneyand the interest an account has already earned. Determine how much your money can grow using the power of compound interest. In this session Nirmal will discuss how to calculate Compound Interest in just 5 seconds.
Compounded annual growth rate ie CAGR is used mostly for financial applications where single growth for a period needs to be calculated. Compound interest is a great thing when you are earning it. Calculate rate of interest in decimal solve for r r nAP 1nt - 1. The process has been simplified because of the equation that can easily help you in arriving at the result.