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how to calculate compound interest video. You would probably compound continuously but Im just going to keep it a simple example compounding annually. T is the time the money is invested or borrowed for.
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Determining the interest via compound interest method sounds complicated but actually it is not so. 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. With investments a higher interest rate means faster account growth.
T is the time the money is invested or borrowed for.
Just as a review lets say Im running some type of a bank and I tell you that I am offering 10 interest that compounds annually. Calculates principal principal plus interest rate or time using the standard compound interest formula A P1 rnnt. The compound interest formula is. When looking for loans and credit cards try to find the lowest interest rate possible.
