If interest is earned on previous interest along with interest on principal amount, that is called as compound interest. With compound interest the total debt will be growing exponentially. Formulae for compound interest = P(1+r/n)^nt. P is principal amount, r is annual rate of interest, t is the number of years person has borrows the amount, n is number of times the interest is compounded per year. This section contains questions and answers on compound interest.
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