The+compound+interest+formula+gives+the+total+account+value+at+the+end+of+the+time+period.If+we+want+to+find+the+interest+accrued+during+that+time+we+need+to+subtract+the+principal+from+that+total.

Question

The+compound+interest+formula+gives+the+total+account+value+at+the+end+of+the+time+period.If+we+want+to+find+the+interest+accrued+during+that+time+we+need+to+subtract+the+principal+from+that+total.
True
False

GPT-4o mini · Answer

True

The compound interest formula calculates the total account value (future value) at the end of a specified time period. To find the interest accrued during that time, you would subtract the principal (the initial amount) from the total account value.