- Min Bahadur Nepali
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.