Compound Interest Formula

Compound Interest Formula compound interest formula With compound interest the amount you are calculating interest on, changes every year The interest is calculated for the first year and is then added on to the nu formula The simple interest formula is linear: I = P r n I=Prn I=Prn while the compound interest formula is non-linear: A = P n A=P^ A=Pn in

nu formula Derivation Let us consider the principle as “P” and rate of interest as “R” At the end of first compounding period, the simple interest on principal is P*r

formula1688 Compound Interest Formula FV=PV^N Annuity Formula FV=PMT(^N Make additions at start end of each compounding period Results Future Value: $ Compound Interest Formula Compound interest