# Compound Interest:

## Introduction

i. Compound interest (or cyclic interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from former periods.
ii. In a simple interest system, interest is calculated of the total years at a time of original principal.
iii. In a compound interest system, interest is calculated at a fixed duration of the accumulated principal. While we calculate the interest, new sum will be raised.

## Learning Out come

i. To calculate the compounded amount.
ii. To calculate the compounded interest.

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