Solution Compounded n times a year and after t years the total amount is given by. In the formula A represents the final amount in the account after t years compounded n times at interest rate r with starting. The compounded interest doubles in about 14 years while the non compounded simple interest doubles in about 20 about years.
Create an Excel document to compute compound interest.
Compound interest is a great thing when you are earning it. Compound interest is when a bank pays interest on both the principal the original amount of moneyand the interest an account has already earned. Click the play button to start the video. T time in years.