Length of Time in Years. Using the compound interest formula calculate principal plus interest or principal or rate or time. Monthly compounding is calculated by principal amount multiplied by one plus rate of interest divided by a number of periods whole raise to the power of the number of periods and that whole is subtracted from the principal amount which gives the interest amount.
Includes compound interest formulas to find principal interest rates or final investment value including continuous compounding A Pert.
Includes compound interest formulas to find principal interest rates or final investment value including continuous compounding A Pert. R is the the annual interest rate in decimal. I would choose option 1. To calculate a monthly interest rate divide the annual rate by 12 to reflect the 12 months in the year.