Monthly Compound Interest is calculated using the formula given below Monthly Compound Interest P 1 R 12 12t P Monthly Compound Interest 20000 1 1012 1012 20000. T the number of periods the money is invested for. The formula is given as.
Compound interest total amount of principal and interest in future or future value less principal amount at present or present value P 1.
Generally when someone deposits money in the bank the bank pays interest to the investor in quarterly interest. It is the result of reinvesting interest rather than paying it out so that interest in the next period is then earned on the principal sum plus previously accumulated interest. A P 1rn nt P. The formula used for finding compound interest is.