Interest, COMPOUND

In this the amount at the close of each unit of time becomes the principal for the succeeding unit. The units of time are intervals in a geometrical progre ion in which the principal is the first term, and unity, plus the rate, the common multiple. P.(1+r)P.(1+r)*P...... (1+r) P is the form of the series. The (n+1)th term is the amount at the close of n units of time. The compound interest is found by subtracting the principal from the (n+1)th term. ads a