An investment earns 3 compounded monthly. So in the second period you would earn 11 dollars interest. If you start out with 100 dollars and you receive 10 dollars as interest at the end of the first period you would have 110 dollars that you can earn interest on in the second period.
Amount that you plan to add to the principal every month or a negative number for the amount that you plan to withdraw every month.
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. This means that interest is converted to principal 12 times throughout the year at the rate of 075 each time. T the number of periods the money is invested for. 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.