Thus let us substitute the values we have into the formula. From the formula for compound interest we know CI P1R100 t P. A P 1 rnnt.
Compound interest is the total amount of interest earned over a period of time taking into account both the interest on the money you invest this is called simple interest and the interest earned or charged on the interest youve previously earned.
Compound interest is the total amount of interest earned over a period of time taking into account both the interest on the money you invest this is called simple interest and the interest earned or charged on the interest youve previously earned. This time period usually would be in years. So Compound Interest will be-CI. 50000 is borrowed and the rate of interest is 10 per annum.