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Mathematics

If P = sum lent, r = rate of interest per year, n = number of years and amounts =A, then :

  1. A=P(1+r100)nA = P\Big(1 + \dfrac{r}{100}\Big)^n

  2. AP=(1+r100)nA - P = \Big(1 + \dfrac{r}{100}\Big)^n

  3. A=P(1r100)nA = P\Big(1 - \dfrac{r}{100}\Big)^n

  4. A - P = (1r100)n\Big(1 - \dfrac{r}{100}\Big)^n

Compound Interest

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Answer

If P = sum lent, r = rate of interest per year, n = number of years and amounts =A, then :

A=P(1+r100)nA = P\Big(1 + \dfrac{r}{100}\Big)^n

Hence, Option 1 is the correct option.

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