An easy and straightforward way to calculate the amount earned with an annual compound interest is using the formula to increase a number by percentage. Excel Compound interest formula FVB2B4B3B40-B1 B2B4. PV is the present value.
Beginning Value x 1 interest rate number of compounding periods per year years x number of compounding periods per year Future Value.
N is the number of investment periods for example 36 months 3 years etc. This example assumes that 1000 is invested for 10 years at an annual interest rate of 5 compounded monthly. This formula is applicable if the investment is getting compounded annually means that we are reinvesting the money on an annual basis. In our example the formula is A2 1B2 where A2 is your initial deposit and B2 is the annual interest rate.