Guide to the Compound Interest Formula

Guide to the Compound Interest Formula compound interest formula The compound interest formula is simple and involves four variables P,R,N,n The P in the formula stands for the principal amount of the investment, and R nu formula Important Compound Interest formulas · Amount = Pmathbf{^} · Compound Interest =Total amount

nu formula This formula is derived from the one above When interest is compounded annually, we would have the fraction r1 and multiply t by 1 since it only compounds

formula 1688 t = time in years If the interest is compounded yearly, n is 1 If the interest is compounded semi-annually, n is 2 If the interest is compounded quarterly, n For example, if you invest Rs 50,000 with an annual interest rate of 10% for 5 years, the returns for the first year will be 50,000 x 10100 or Rs 5,000 For