Compound interest

Formula

Compound interest formula
A
final amount
P
principal amount (initial investment)
r
annual nominal interest rate (as a decimal)
n
number of times the interest is compounded per year
t
number of years

Formula description

Compound interest arises when interest is added to the principal, so that from that moment on, the interest that has been added also itself earns interest. This addition of interest to the principal is called compounding.

Calculator (how to use calculator?)

Compound interest formula
P
r
n
t
A
Precision

Formula code

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References

  1. wikipedia:Compound interest.

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