# Compound Interest

Mathematics

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Created by Reshma B   English

##### Course description

At the point when interest is principal amount of an investment, loan or deposit, it is known as compound interest. The principal amount is multiplied by one plus the annual interest rate to the power of the number of compound periods. The accumulated interest is added to the principal amount and the interest for the up and coming period is calculated on the new amount, which is the principal amount plus the amount of the accumulated interest over the prior period.

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