Putting these variables into the compound interest formula would show. Compound interest is the interest on a loan or deposit calculated based on both the initial principal and and the accumulated interest from previous periods. Displaystyle delta is the interest rate on a continuous compounding basis and r is the stated interest rate with a compounding frequency n.
An amount of 10000 was invested on Jan 1 20X1 at annual interest rate of 8.
Is there a way to adapt this formula to 1 In each period only a of the interest gained in that period remains in the sum. Following is the formula for calculating compound interest when time period is specified in years and interest rate in per annum. However in this example the interest is paid monthly. V i initial value.