How do you find compound interest?

Answer 1

The formula for compound interest is:

A = P * ( 1 + ( R / N ) )^( N * T )

where

A = amount of money accumulated after n years, including interest.

P = principal amount (the initial amount you borrow or deposit)

R = annual rate of interest (as a decimal)

N = number of times the interest is compounded per year

T = number of years the amount is deposited or borrowed for.

Example:

"John Doe invests $100 in an account earning interest at a rate 4% every 6 months. Calculate the value of his investment a the end of 4 years." ...

A = amount of money accumulated after n years, including interest.

P = 100

R = 4 / 100 = 0.04

N = 2

T = 4

so...

A = P * ( 1 + ( R / N ) )^( N * T )

A = 100 * ( 1 + ( 0.04 / 2 ) )^( 2 * 4 )

A = 100 * 1.02^8

A = 100 * 1.171659381

A = 117.17

So the answer is $117.17
Compound interest formula is A = P (1 + r/n)nt. P is principal, r is annual rate of interest, t stands for number of years, A is the amount, including interest, that accumulates over x amount of years, and n is the number of compounding per year.

Answer 2

The formula for the amount A in a compound interest account at annual interest rate r, where the principal P is compounded n times per year, for n years is

A = P(1+r/n)^nt

* * * * *

The above formula is for t years with interest compounded n times a year, not n years, as stated.

So start with 2000

Annual interest rate 4% (that is generous!)

Interest paid every 6 months - twice a year

How much is it worth after 3 years?

P = 2000

r = 0.04 (remember, per cent means "as a part of 100")

n = 2

t = 3

A = 2000(1+.04/2)2*3 = 2000*1.026 = 2000*1.126162 = 2252.32
compound rate calculate by averging rate

if you want to withdraw RS.45000 at the end of each quarter for the next 6 years then what amount must you invest today at 6% compounded quaterly?

Answer 3

Compound Interest Formula

P = principal amount (the initial amount you borrow or deposit)

r = annual rate of interest (as a decimal)

t = number of years the amount is deposited or borrowed for.

A = amount of money accumulated after n years, including interest.

n = number of times the interest is compounded per year

Example:

An amount of $1,500.00 is deposited in a bank paying an annual interest rate of 4.3%, compounded quarterly. What is the balance after 6 years?

Solution:Using the compound interest formula, we have that

P = 1500, r = 4.3/100 = 0.043, n = 4, t = 6. Therefore,

So, the balance after 6 years is approximately $1,938.84.

Answer 4

Compound interest = C*[(1 + r/100)t - 1]

where C is the capital,

r the interest rate (in percentage) per unit period

t is the number of periods.

Answer 5

b=r