Compound Interest Formula: What Is It And Why Is It Useful?

compound interest formula  Compound interest formula Expected earnings from compound interest interest can be calculated using the following formula: A = P x nt , where: A = the Learn the Compound Interest Formula in this free math video by Mario's Math Tutoring 0:05

The interest on a loan or deposit calculated based on the initial principal, and the collective interest from previous periods is called compound interest  If you had a $1,000 loan with interest that compounded 20% annually, you would owe 20% on the annual balance, which would increase every year After three years

Formula for Compound Interest · Amount = mathbf{Pleft ^{nT}} · Compound Interest = Total amount Use compound interest formulas 2 Calculate present value 3 Understand and compute effective annual yield Page 4