I need the formula for calculating Cumulative Interest and compound interest.
2006-08-30 03:58:42 · 6 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
Compound interest formula
P = is the principal (the initial you borrow or deposit)
r = is the amount of rate of interest (Percentage)
n = is the number of years the amount deosited or borrowed
A = is the amount of money accumulated after n years, including interest'ed
A = p (1 + r)n
Clidk on the URL below for additional information
math.about.com/library/weekly/aa042002a.htm
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Cumulative interest is acquired when a payment or payments are missed and the interest was not paid. The interest are added to the next payment.
2006-08-30 05:20:04 · answer #1 · answered by SAMUEL D 7 · 0⤊ 0⤋
For compound interest it is
A=P(1+(r/100))to the power n
A=Total amount
P=Principle amount
r=Rate of interest
n=time
For cumulative interest wait for some more answers
2006-08-30 11:08:30 · answer #2 · answered by zombie 5 · 1⤊ 0⤋
You need to be more specific. There are future and present value formulas. Are you talking about one lumpsum investment or regular payments? How are the payments made - in advance or in arrear? What is the interest - nominal or effective?
2006-08-30 11:48:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Compound interest would be like this:
Capital = C
Final savings = S
Time (in years) = Y
Interest rate (in fraction added per year) = P
S=C*((1+P)^Y)
2006-08-30 11:08:29 · answer #4 · answered by Anonymous · 0⤊ 0⤋
P = Principal
i= periodic interest rate (monthly, quarterly, yearly, whatever)
n= no. of periods
Compounded Interst accumulated over n periods = P[(1+i)^n-1]
2006-08-30 11:14:26 · answer #5 · answered by rgsoni 2 · 0⤊ 0⤋
Use Excel.
2006-08-30 11:22:57 · answer #6 · answered by Ray M 1 · 0⤊ 0⤋