I would choose option 1. In order to calculate the value of the investment after the period of 3 years annual compound interest formula will be used. Calculate Accrued Amount Principal Interest A P 1 rnnt.
Calculate Principal Amount solve for P P A 1 rn nt.
To calculate compound interest monthly simply set the compounding frequency setting on the calculator above to monthly Alternatively you can use the formula above and set n equal to 1 and t equal to 12 to find out how much money youll have if interest is compounded monthly for a year. Compound Interest Formulas and Calculations. Typically compounding occurs either annually semi-annually or quarterly. Compound interest is based on the amount of the principal of a loan or deposit and interest rate which accrues in conjunction with how often the loan compounds.