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how to calculate compound interest quarterly. R is the quarterly compounded rate of interest. However the interest is not the same each year it increases.
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Add 1 to the quarterly interest rate. Initial investment 1 annual interest ratecompounding periods per year years compounding periods per year. N is the number of periods.
In the formula A represents the final amount in the account after t years compounded n times at interest rate r with starting amount p.
But here you need to calculate interest four times in a year. A P 1 r m mt In the present case A Future Value of the investment is to be calculated. Quarterly interest rate divide by 4 b. To calculate compound interest use the formula below.
