In many areas of GRE math you dont have to. With the approximation calculations in compound interest problems becomes easy and we get the answer near to the actual answer. Check out this video to know about Simple Compound Interest.
Compound Interest Solver Using the general compound interest formula Plug in your specified values for each variable For instance if you invest 240000 at 15 which is compounded 12 times a year for 10 years you can find the amount of money accumulated by entering the following values.
Calculating Compound Interest on Investments 1. R Rate of Interest. Your intermediate accounting textbook may substitute n for time the n stands for number of periods time. You figure simple interest on the principal which is the amount of money borrowed or on deposit using a basic formula.