Compound interest is the addition of interest to the principal sum of a loan or deposit or we can say interest on interest. Calculate compound interest on an investment or savings. A P e r t 1144 P e 004 6 1144 P e 024 1144 e 024 P 9 P.
FV 10000 x 1 15 4 4 x 1 1158650 Monthly Compounding.
It also explains two types of problems tha. Lets first review how simple interest works. Monthly amortized loan or mortgage payments. Compound Interest in Excel Formula.