Compound Interest Power Point Presentation

style.visibilityppt_xppt_yppt_yppt_yppt_y AT THE END OF THE FIRST YEAR(OR ANY OTHER FIXED PERIOD), IF THE INTEREST ACCURED IS NOT PAID TO THE MONEY LENDER BUT IS ADDED TO THE LENDER BUT IS ADDED TO THE PRINCIPAL, THEN THIS AMOUNT BECOMES THE PRINCIPAL FOR THE NEXT YEAR( OR ANY OTHER FIXED PERIOD) AND SO ON. THIS PROCESS IS REPEATED UNTIL THE AMOUNT FOR THE WHOLEE TIME IS FOUND.THE DIFFERENCE BETWEEN THE FINAL AMOUNT AND THE ORIGINAL PRINCIPAL IS CALLED COMPOUND INTEREST.COMPOUND INTERESTstyle.visibilitystyle.visibilityppt_wppt_hstyle.visibilityppt_wppt_h TECHNICAL TERMSstyle.visibilityppt_wppt_hstyle.visibilityppt_wppt_h SIMPLE INTEREST :- P * R * T / 100 COMPOUND INTEREST :-FINAL Amount -- ORIGINAL PRINCIPAL AMOUNT :- PRINCIPAL + INTEREST PRINCIPAL :- A/ ( 1+ RT ) RATE :- r*100 TIME :- (1/R)(A/p-1)FORMULAS !!! AMOUNT :- P(1+r/100)^nCOMPOUND INTEREST :- P [(1+r/100)^n-1]AMOUNT FOR SUCCESSIVE RATES :-(1+r1/100)(1+r2/100)(1+r3/100......style.visibilityppt_wppt_hstyle.visibilitystyle.visibilitystyle.visibilitystyle.visibilitystyle.visibilitystyle.visibilitystyle.visibilitystyle.visibilitystyle.visibilitystyle.visibilitystyle.visibilitystyle.visibility In the CASE of simple interest, the principal remains constant for the whole time but in the CASE of compound interest, the principal keeps on changing every year (or any other fixed period). If the interest is compounded annually, the principal changes after every year and if the interest is compounded half-yearly (or other any fixed period), the principal changes afteR every six months (or any other fixed period). If the