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Compound Interest:
When the interest is calculated for every period on the total previous amount, then the total amount of interest gained on all the periods is called compound interest.
Let Principal = P
Rate of interest = r
No. of years = n
After 1st year, interest 
After 1st year, Amount 
Now principal becomes,
Principal 
After 2nd year, interest 
After 2nd year, Amount 
and so on.
Amount after n-years is
Hence
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