The basic formula for Compound Interest is. A Accrued Amount principal interest P Principal Amount. R Annual Nominal Interest Rate in percent.
Part 3 will show you a formula which you can use to calculate compound interest.
In the next time period we then take this new value unlike simple interest and increase it by the same percentage and so on. The basic formula for Compound Interest is. COMPOUND INTEREST by expert teachers for the Edexcel GCSE 9-1 Maths exam. To answer this question you begin by working out 5 of 250 which 1250.