CBSE Class 12-commerce Answered
I have doubt why we withdraw ruppes from amount, other hand when we deposit x ruppes for second year it added in principal why isn't added in amount for next year principal?
Asked by viratarya657 | 14 Apr, 2020, 08:58: PM
Expert Answer
For compound interest
We add to the principle only for the frist year
then in the second year
principle 2nd year = amount at end of 1st year (principle of first year + interest at the end of frist year)
principle 3rd year = amount at end of 2nd year (principle of 2nd year + interest at the end of 2nd year)...so on
for simple interest we add directly to Principle
Answered by Arun | 18 Apr, 2020, 11:56: AM
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