Where n is the number of times compounded t is time and r is the rate. For the formula for compound interest just algebraically rearrange the formula for CAGR. Ever wanted to illustrate exactly how powerful compound interest can be.
That is the interest is continuously added to the principle to be charged interest again.
Formula for Continuous Compound Interest. P Principle or the amount of money you start with. This formula makes use of the mathemetical constant e. The continuous compounding formula can be found by first looking at the compound interest formula.