Saturday, March 1, 2014

What is formula of compound interest?

What is formula of compound interest?
Compound Interest for n compounds per year:
A = P(1+r/n)nt

Where
A = amount of money at time t
P = Principal balance
r = yearly interest rate
n = number of compunds per year
t = time in years

Continuous Compound Interest:
A = Pert


A = amount of money at time t
P = Principal balance
r = yearly interest rate
t = time in years

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