Sure! Let's analyze and solve the problem step-by-step.
Step 1: Understand the given information
- Principal (P) is 4 times the Compound Interest (CI).
Step 2: Express the relationships mathematically
- Since the Principal (P) is 4 times the Compound Interest (CI), we can write:
[tex]\[
P = 4 \times \text{CI}
\][/tex]
Step 3: Recall the formula for the Compound Amount (A)
- The Compound Amount (A) is the sum of the Principal (P) and the Compound Interest (CI). Therefore, we can express it as:
[tex]\[
A = P + \text{CI}
\][/tex]
Step 4: Substitute the value of P from Step 2 into the formula for A
- From Step 2, we have [tex]\( P = 4 \times \text{CI} \)[/tex]. Substituting this into the formula for A gives us:
[tex]\[
A = 4 \times \text{CI} + \text{CI}
\][/tex]
Step 5: Simplify the equation
- Combine the terms involving CI:
[tex]\[
A = 4 \times \text{CI} + \text{CI} = 5 \times \text{CI}
\][/tex]
Step 6: Interpret the result
- The Compound Amount (A) is 5 times the Compound Interest (CI).
So, the compound amount is 5 times the compound interest.
