Compound interest requires more work. It can either be calculated with a mathematical formula or found using spreadsheet software such as Microsoft Excel. The interest rate stated on your investment prospectus or loan agreement is an annual rate.
Following is the formula for calculating compound interest when time period is specified in years and interest rate in per annum.
When plugged in the equation would be. A P 1rnnt. The interest rate stated on your investment prospectus or loan agreement is an annual rate. Where CI Compounded interest.