How to use the compound interest formula. P is the principal the amount money borrowed or invested r is the interest rate per year or per annum n is the loan or investment duration in years STEP 2 Thus let us substitute the values we have into the formula. Lets remember that only effective rates of interest.
That earns 2 compound interest that is done annually r 002.
Calculations 5 through 8 illustrate how to determine the number of time periods n. Will there be 6000 dollars in the account A 6000. Calculations 5 through 8 illustrate how to determine the number of time periods n. Compound interest is really mathematically interesting.