Depending on the type of financial instrument youre managing compounding interest can either help you or hurt you. You can also refer to our tutorial on how to calculate compound interest. For the total accumulated wealth or amount the formula is given as.
P the principal investment amount.
The compound interest formula is A P1rn to the power of nt Compounding Interest Pros and Cons. This formula applies when interest is earned on an annual basis and the interest is earned once a year. Free investment calculator to evaluate various investment situations and find out corresponding schedules while considering starting and ending balance additional contributions return rate or investment length. R the annual interest rate decimal.