A is the future value of investmentloan including interest earned. Calculating Compound Interest on Investments 1. R is the the annual interest rate in decimal.
A P 1 rn nt.
What is the compound interest formula. Compound interest is the total amount of interest earned over a period of time taking into account both the interest on the money you invest this is called simple interest and the interest earned or charged on the interest youve previously earned. Length of Time in Years. Below is the compound interest formula on how to calculate compound interest.