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4 April, 10:36

How to figure compound interest

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  1. 4 April, 11:04
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    Compound interest formula (annual)

    A = P (1 + i) ^n

    where A = total/final amount

    P = principal/initial/beginning amount

    i = interest rate

    n = number of years

    OR if interest was calculated in different time periods such as monthly, semiannually, fortnightly, weekly, daily etc

    A = P (1 + i/k) ^n

    where k = number of periods in that year

    n = kt = number of periods * number of years

    e. g. if interest was calculated monthly for 2 years

    k would be 12 & n would be 12*2 = 24
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