Compound Interest Formula

compound interest formula  What is Compound Interest? · I = Interest amount This is the extra amount that is added to the original · P = Principal amount This is the original amount  Use compound interest formulas 2 Calculate present value 3 Understand and compute effective annual yield Page 4

Make additions at start end of each compounding period Results Future Value: $ Compound Interest Formula Compound interest Compound interest calculation formula · FV: future value · P: principal · r: interest rate · n: number of compounding periods per year (yearly =

Compound interest is interest accumulated from a principal sum and previously accumulated interest It is the result of reinvesting or retaining interest This finance video tutorial explains how to calculate the compound interest on an annual