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Compound intrest problem

As we know intrest calculated by bank compoundly , but I have a question that if payer pay interest every year equal to their intrest amount than that intrest is not added to principle I think and payer pay equal intrest every year as simple intrest or it pay lesser intrest as if he pay some amount of principle with annual interest . Can you please answer my query ...


Shivam Vij

Shivam Vij

CA Foundation

520

10-Sep-20 09:15

51

Answers (1)

Its not dependent on payment by payer but chargeable by lender......... compound means once the interest is due and not paid, interest is charged on interest where under simple even if interest is due but not paid, there is no interest charge on interest due


sudha reddy

sudha reddy

Moderator

10-Sep-20 10:05

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