Compound Interest Formula

compound interest formula  The interest on the original balance alone would be called simple interest The additional earnings plus simple interest would equal the total amount earned How to calculate compound interest · 1 Divide the annual interest rate of 5% by 12 = · 2 Calculate the number

Key Takeaways · Compound interest is the interest computed on the sum of the initial investment amount and its accumulated interests · The Compound Interest

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 To calculate compound interest in Excel, you can use the FV function This example assumes that $1000 is invested for 10 years at an annual interest rate of