Compound It Compound Frequency Annually Semiannually Monthly Daily. Compound interest on the other hand means that interest is paid or charged on the principal amount plus on the interest as well. 1000 x 005 x 3 150.
1000 x 005 x 3 150.
The key difference between simple interest vs. I p x 1 rt - p In that formula p is the principal amount r is the interest rate and t is the number of accrual or compounding periods in a year. 1000 x 005 x 3 150. General compound interest takes into account interest earned over some previous interval of time.