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compound interest rate formula explained. FV is the future value of the investment including interest. Principal x Rate x Time Interest p x r x t.
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A good point of reference is the rule of 72 which tells you how many years it takes to double your investment when interest is compounded annually. The compound interest formula is P 1in - P where P is the principal i is the annual interest rate and n is the number of periods. That was you can imagine your deposit entering your second year then you get plus 10 on that not 10 on your initial deposit.
The compound interest formula is.
The Rule of 72 is another way to make estimates about compound interest quickly. Thats why we say it compounds. The formula used to calculate standard compound interest including the principal is as follows. For 1 year the impact of rate r compounded n times is.
