Compound Interest: What It Is, Formula, Examples

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

distance formula Single Payment Compound Interest Formulas · F = $1,000 + $600 = $1,600 · F = $1,000 10 = $1,791 · F = $1,000 6 = $1,772 · F = $1,000 The compound interest formula is simple and involves four variables P,R,N,n The P in the formula stands for the principal amount of the investment, and R 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

pg133 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