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what is the formula for solving compound interest. This formula applies when interest is earned on an annual basis and the interest is earned once a year. Compound interest depends on the amount accumulated at the end of the previous tenure but not on the original principal.
Difference Between Simple Interest And Compound Interest In 2021 Simple Interest Compound Interest Basic Math from in.pinterest.com
Total principal and interest P 1 i n. Heres how you would get that answer using the formula and applying it to the known variables. At 3 annual interest it will take approximately 231 years to double your money.
It is to be noted that the above formula is the general formula for the number of times the principal is compounded in a year.
FV Future Value PV Present Value r Interest Rate as a decimal value and. If the interest is compounded annually the formula of amount is given by. For the total accumulated wealth or amount the formula is given as. Calculate compound interest on an investment or savings.
