How to Calculate Compound Interest Payments Method 1of 4. In the first year the interest rate of 10 is calculated only from the 10000 principal. When calculating compound interest the amount of compounding periods makes a major distinction.
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Put all this to the power of the number of months your savings will be put away 4. In the first year the interest rate of 10 is calculated only from the 10000 principal. Use the Compound Interest Calculator to learn more about or do calculations involving compound interest. A P 1 r m mt In the present case A Future value of the investment is to be calculated.