Compound Interest

compound interest formula  Compound interest is “interest-on-interest”, or the ability of a financial instrument to generate earnings on its earnings See the compound interest As explained earlier, the future value of money after n period with an interest rate of i can be calculated using the Equation 1-1: F=Pn which can also be

To calculate annual compound interest, multiply the original amount of your investment or loan, or principal, by the annual interest rate Add that amount to To calculate monthly compound interest, use the formula A = P^, where A is the final amount, P is the principal, r is the annual

Derivation Let us consider the principle as “P” and rate of interest as “R” At the end of first compounding period, the simple interest on principal is P*r Learn about the basics of compound interest, with examples of basic compound interest