What is Compound Interest?
- 4 Answers
- 4717 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / gopi
it means every year we have to add the accumulated interest
to the total principle amount, then we again we have to
calculate the ineterst for that year.
| Is This Answer Correct ? | 11 Yes | 2 No |
Answer / h.r. sreepada bhagi
There are two concepts - Simple interest and Compound
interest. Simple interest is the interest calculated on the
base amount, where as Compound interest refers to Interest
on the Interest earned in the previous period. It's
illustrated below :
Amount of Fixed Deposit for 3 years receivable on maturity -
Rs. 100000 @10% interest calculated annually.
1st year interest Rs.10000/- Simple Interest.
2nd year interest Rs.11000/- Compound Interest.
3rd year interest Rs.12100/- Compound Interest.
The depositor will get Rs.133100/- at the end of 3 years on
maturity of the deposit. Int eh 2nd & 3rd year interest is
calculated on the previous years interest also & it's called
compounding.
| Is This Answer Correct ? | 8 Yes | 0 No |
Answer / santosh
the compound interest is the interest on the interest for
the amount taken as loan
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / ramesh9
Equity of share holder in a subsidiary company is called
compound interest.
| Is This Answer Correct ? | 2 Yes | 11 No |
how will you adjust voluntary seperation payment in cash flow statement
Our is a banking Activity, one person is supplying printing advertisement sheet of our product, whether he is liable to deducte TDS @ 1%
Concepts Of Debit,Credit,Double Entry Accounting and Matching
Hello Sir, My Name is Shoaib, I am Novice in Accounting Field. I want to learn the simple & step by step, procedure to final my company account. Please Help
can you give me debit n credit rules
REPORATE
what is the difference between cost of goods sold and cost of sales ?
What action could be taken by you and your manager to improve your performance in your current position?
What is Tax Groups
What is a trial balance in accounting?
What is Normal Loss? and What is the reason for Debiting such Loss in P&L account and also Crediting in Trading Account? and how the Loss should be accounted?
if current liabity items shown in asset side of balance sheet then whats position of that company
Audit 
