Compund interest is as a result of reinvesting interest rather than paying it out so that interest in the next period is then earned on the principal sum plus previously accumulated interest. If interest compounds more often than annually it is difficult to. Calculate compound interest in math.
Principal x Rate x Time Interest p x r x t.
To calculate compounding interest you need to know the periodic interest rate the amount of money in the account and the number of periods the money remains in the account. The formula used in the compound interest calculator is A P 1rnnt A the future value of the investment P the principal investment amount r the interest rate decimal. So 4 would be 004 divided by n the number of times your. The total amount accrued principal plus interest from compound interest on an original principal of.