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The formula for calculating Potential energy is P.E. = m * g * h, where 'm' is the mass of an object, 'g' is the acceleration of gravity, 'h' is the height of the object. 1  Stored mechanical energy: The energy which is possessed by an object due to its stored energy of position. 2  E.g., rubber bands, springs.
Kinetic energy is energy possessed by a body by virtue of its movement. Potential energy is the energy possessed by a body by virtue of its position or state. While kinetic energy of an object is relative to the state of other objects in its environment, potential energy is completely independent of its environment. Hence the acceleration of an object is not evident in the movement of one object, where other objects in the same environment are also in motion.