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how to work out compound interest ks3. P is the principal in the account. An extension question on both sides to challenge learners.
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The difference between the two is that simple interest is a fixed amount of interest. A is the final value of the account after interest is calculated. Amount after n years starting amount x multipliern.
N Number of Periods.
The formula for compound interest including principal sum is. Its essentially interest on interest which over time leads to exponential growth. A P1 rn nt. Includes compound interest formulas to find principal interest rates or final investment value including continuous compounding A Pert.
