The concept of compound interest, or 'interest on interest', is that accumulated interest is added back onto your principal sum, with future interest being calculated on both the original principal and the already-accrued interest. This compounding effect causes investments to grow faster over time...
funds, commodities, and some types ofderivatives. It's the standard method for comparing the performance of investments withliquidity. This process is a preferred method, considered to be more accurate than a simple return because it includes adjustments for compounding interest. Different asset classe...
To find the amount when compounded half-yearly, we can follow these steps:Step 1: Identify the Variables - Principal (P): This is the initial amount of money invested. - Rate of Interest (R): T