Question

true or false
the compound interest formula gives the total amount value at the end of the time period
if we want to find the interest accured during that time we need to subtract the principal from that total

Answer 1

True. The compound interest formula calculates the total amount (A) at the end of a time period, including both the principal (P) and the interest accrued. To find the interest accrued during that time, you can subtract the principal from the total amount:

\[ \text{Interest} = A - P \]

Where:
- \( A \) is the total amount after interest,
- \( P \) is the principal amount.