2 thoughts on “3. What is the formula of amount in finding compound interest?<br />”
Answer:
The formula for compound interest is P (1 + r/n)^(nt), where P is the initial principal balance, r is the interest rate, n is the number of times interest is compounded per time period and t is the number of time periods.
Answer:
The formula for compound interest is P (1 + r/n)^(nt), where P is the initial principal balance, r is the interest rate, n is the number of times interest is compounded per time period and t is the number of time periods.
Answer:
Compound interest = total amount of principal and interest in future (or future value) less principal amount at present (or present value)
= [P (1 + i)n] – P
= P [(1 + i)n – 1]
Step-by-step explanation:
Where:
P = principal
i = nominal annual interest rate in percentage terms
n = number of compounding periods
I hope this helps you