Discussion :: Engineering Economy - Section 1 (Q.No.33)
|Hister said: (Aug 5, 2021)|
|Can anyone explain this?|
|Vaxoo said: (Jun 15, 2022)|
|If P is the principal then the simple compound after the first year(A)=P+P*i*n.(can also be written as P(1+i*n).
Now, the interest factor simply is by how many times folds the principal has increased.
So, the principal has been increased by A/P =[P(1+ni)]/P =(1+ni).
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