What is Compound Interest and How Is It Calculated?

What is Compound Interest and How Is It Calculated? compound interest formula However, it is much more useful in most cases to use the simplified formula B=P because it leads to the formula for a much more common nu formula Determine how much your money can grow using the power of compound interest * DENOTES A REQUIRED FIELD Calculator Step 1: Initial Investment

nu formula Derivation Let us consider the principle as “P” and rate of interest as “R” At the end of first compounding period, the simple interest on principal is P*r

conflict of interest Click the tabs to calculate the different parameters of the simple interest formula In real life, most interest calculations involve compound Interest To Compound interest is taken from the initial – or principal