Heres the compound interest formula. Compound interest allows your savings to grow faster over time. In an account that pays interest the earnings are typically added to the original principal at the end of every compounding period.
What will be his ending balance after one year.
Compound Interest is calculated on the initial payment and also on the interest of previous periods. As with the other formula the rate per period and number of periods must match how often the account is compounded. N The number of periods. Compound interest is interest calculated on the sum of the initial amount of either an investment or a loan plus any interest already accumulated.
