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Take Compound Interest quiz
Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of interest to the principal is called compounding.
Compound interest is standard in finance and economics and Compound Interest formula is as follows
A = P (1 + r/n)^{nt} Where A = Future Value P = Initial Deposit Amount n = Compounding Frequency r = Rate of interest in % t = Number of years invested tenure
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