Compound Interest N. Compound interest or interest on interest is calculated with the compound interest formula. Given principal sum rs.
Compound Interest Formula Compound Interest Interest Rates Compounds from pinterest.com
The formula for compound interest is p 1 r n nt where p is the initial principal balance r is the interest rate n is the number of times interest is compounded per time period and t is the number of time periods. The basic formula for compound interest is. And by rearranging that formula see compound interest formula derivation we can find any value when we know the other three.
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10000 rate 10 and time 2 years. R the interest rate decimal n the number of times that interest is compounded per period. The compound interest formula is p 1 i n p where p is the principal i is the annual interest rate and n is the number of periods. Pv fv 1 r n.
