How do I calculate compound interest?

Question

Daily, monthly and annually.

Answer 1

Daily, monthly and annually.

annually
i=p*(1+r)^t

monthly
i=9*(1+r/12)^(12t)

daily
i=p=(1+r/365)^(365t)

continuously
i=p*e^rt

Answer 2

J's answer shows how to calculate compound interest
if one is compounding the interest continually.
To answer your question, let's begin with the
interest compounded annually.
The formula for that is
S = P(1 + i)^n.
Here
S is the accumulated amount
P is the principal
i is the annual interest rate
n is the number of times the interest is compounded,
here the number of years.
Example: If I invest 10000 for 5 years at 6%
compounded annually, how much is in
my account at the end of 5 years?
Answer: S = 10000(1+ .06)^5 = 13382.26

Now if the interest is compounded monthly,
use the same formula as above except
1). Divide the given annual interest rate by 12.
2). If the time is given in years multiply it by 12
to get the number of times the interest is
compounded.
Example. If I invest 10000 for 5 years at 6%
compounded monthly, how much is in
my account at the end of 5 years?
Answer: S= 10000(1 + .06/12)^(5*12) = 13488.50

3).If the interest is compounded daily
repeat the steps above for the interest
compounded monthly, except change
the 12 to 365.
Example. Same as in part 2 except change
the compounding to interest compounded daily.
Answer: S= 10000(1 + .06/365)^(5*365) = 13498.26

Hope that helps a bit.

Answer 3

divide the rate by the period (R/p). Add 1 . This is the growth factor.

Total $ = initial $ x (growth factor) ^ t x p

example: $1000 at 5% compounded quarterly for 10 years:
Total $ = $1000 [1+ .05/4] ^ 40
Total $ = $1000 [1.0125] ^40
Total $ = $1000 [1.643619]
Total $ = $ 1643.62

Pe^rt only works when the compounding is continuous

Answer 4

I am not sure if this will help but the present value of compounded interest would be :
((1+(rate/periods)^(time*period)

In certain occasions this would turn into a Ln case.

Answer 5

M = P( a million + i )^n M is the mind-blowing quantity alongside with the central. P is the central quantity. i is the fee of interest in line with 12 months. n is the form of years invested m = seven-hundred(a million+0.06)^5 = £936.seventy six

Answer 6

Use the formula P(e^(rt)) (think of Pert shampoo), where P is your principal, e is the constant e, r is your rate and t is the length of the investment.

Answer 7

tHE IS A CALCULATOR YOU CAN USE HERE IS A LINK http://www.webmath.com/compinterest.html

Answer 8

DEPENDS ON THE CAPITALIZATION TIME, PERT ONLY USES FOR CONTINUOS, FOR THE REST TIME OF CPN U CAN USE THE OTHER FORMULAS

Answer 9

Try purplemath.com.

Guido