formula...?

Question

can anyone tell me d formula for compound interest??..thnx

Answer 1

A = P (1 + i ) ^n

Where

'A' -> future value
'P' -> principle
'i' -> interest
'n' -> number of compound times

E.g.

Calculate the future value with a principle of $5000.00 at 2.3% interest compounded quarterly for 5 years.

i = 0.023 / 4
= .00575

n= 5*4 = 20

A = 5000 (1+0.00575)^20
= 5607.52

Interest earned would be the 5607.52 - 5000, which is 607.52.

Good luck.

Answer 2

Compound Interest
P is the principal (the money you start with, your first deposit)
r is the annual rate of interest as a decimal (5% means r = 0.05)

n is the number of years you leave it on deposit

A is how much money you've accumulated after n years, including interest.

If the interest is compounded once a year:

A = P(1 + r)^n

If the interest is compounded q times a year:

A = P(1 + r/q)^(n*q)

Answer 3

Well, for interest compounded a set number of time per year, such as quarterly or monthly or weekly etc. you can use this formula:

i=P(1+r/n)^(n*t)

P = principal( amount invested)
i = total amount of interest earned
r = interest rate
n= the number of times compounded per year, being one if it is compounded annually, two if biannually, and so on
t = number of years

If the interest is continuously compounded this is the formula to use:

i = Pe^(r*t)

Where 'e' is the natural logarithmic base or approximately 2.718.

Good luck.

Answer 4

A = P[1 + (R/100)]^n

where,

A = Total Amount paid

n = Period of compound interest (no. of times money is compounded i.e annually, quarterly)

P = Principal (Original money borrowed)

R = Rate of compound interest.

Answer 5

In de4th equation, P is the invested principal. A is what it will be worth in n periods of time if the interest rate in EACH PERIOD is i. So if the annual interest rate is 6 percent and the interest is paid quaterly, i = 0.06/4 = 0.015

Answer 6

the equation is as follows...

A=P(1+(r/n))^nt

A is for amount presently
P is for principal
r is for intrest rate (as a decimal)
n is for number of times per year that it is compounded
-ex: Quarterly is 4 and anually is 1
t is the amount of time in years
-ex: $20,000 at 7.5% for 10 years
- 10 years is the t amount


FOR intrest being compounded continually the equation is...

A=Pe^rt

everything is the same except for "e"
which stands for an approximate number of 2.718281828

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