Compound interest or interest on interest is calculated with the compound interest formula. A final amount P principal r interest rate or T how many years to compound Solving for A. Addition Examples If you would like to see more examples of solving compound interest pr oblems just click on the link below.
Your intermediate accounting textbook may substitute n for time the n stands for number of periods time.
Calculate Accrued Amount Principal Interest A P1 rn nt. The bank gives you a 6 interest rate and compounds the interest each month. To calculate compound interest we need to know the amount and principal. Calculate Accrued Amount Principal Interest A P1 rn nt.