The formula to calculate the final capital is:
\[ C_f = C_i \times (1 + \frac{P}{100}) \]
Where:
Capital increase refers to the growth in the value of an investment or asset over time. This increase can be due to various factors such as profit reinvestment, appreciation in asset value, or additional investments. Understanding capital increase is crucial for investors as it helps in assessing the performance of their investments and making informed financial decisions.
Let's assume the following values:
Using the formula:
\[ C_f = 1000 \times (1 + \frac{5}{100}) = 1050 \]
The Final Capital (Cf) is $1050.