Will there be 6000 dollars in the account A 6000. If interest compounds more often than annually it is difficult to. The second way to calculate compound interest is to use a fixed formula.
The compound interest formula is.
To calculate compound interest use the formula below. How to calculate it depends on the type of financial instrument the type of rate used APR or APY the number of compounding periods and other factors. You get interest on the interest from previous years. For monthly compounding the periodic interest rate is simply the annual rate divided by 12 because there are 12 months or periods during the year.