FV using simple interest and FV using compound interest. To do the same the steps are. Where FV is the future value of the asset or investment PV is the present or initial value not to be confused with PV which is calculated backwards from the FV r is the Annual interest rate not compounded not APY in decimal t is the time in years and n is the number of compounding periods per unit t.
Find a Future Value Present Value Interest Rate or Number of Periods when you know the other three.
There are two ways of calculating the future value FV of an asset. To calculate continuous interest use the formula where FV is the future value of the investment PV is the present value e is Eulers number the constant 271828 i is the interest rate and t is the time in years. What does n stand for in the future value formula. With compound interest the accumulated interest is added back to the principal each payment period.