Compound Interest Calculator. A = p (1 + r/n)nt the compound interest formula solves for the future value of your investment ( a ). You can also use this formula to set up a compound interest calculator in excel ®1.
You can also use this formula to set up a compound interest calculator in excel ®1. Thus, the interest of the second year would come out to: A = p (1 + r/n)nt the compound interest formula solves for the future value of your investment ( a ).
Ex 1 Compounded Interest Formula Quarterly YouTube
A = the future value of the investment or loan p = the principal investment or loan amount r = the interest rate (decimal) n = the number of times that interest is compounded per period t = the number of periods the money is invested for ^ =. The compound interest of the second year is calculated based on the balance of $110 instead of the principal of $100. Thus, the interest of the second year would come out to: Your estimated annual interest rate.
