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how to work out compound interest youtube. How to work out compound interest using a formula GCSE mathematics April 30 2016 by Simon Leave a Comment Compound interest using a formula questions are fairly popular on GCSE mathematics papers usually around question 10 in the middle of the paper. Compound interest is similar to simple interest in that the interest is added on annually.
If youre calculating compound in a test you need to become astute at reading the question accurately. Put simply compound interest changes the amount of money in the bank each time and a new calculation has to be worked out. There are ways that you can make sure that compounding works out in your favor.
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Calculate the interest on borrowing 40 for 3 years if the. Calculates principal principal plus interest rate or time using the standard compound interest formula A P1 rnnt. Compound interest on credit cards adds to your debt when. You can learn more about excel modeling from the following articles Interest on Loan.