Simple interest is the interest generated only from the principal. To reach the formula for compound interest you algebraically rearrange the formula for CAGR. Interest amount for each quarter will add to the principal amount for the next quarter.
The formula used in the compound interest calculator is A P 1rnnt A the future value of the investment P the principal investment amount r the interest rate decimal.
P the principal investment amount the initial deposit or loan amount r the annual interest rate decimal n the number of times that interest is compounded per unit t. T the time the. Number of compounding periods. Interest amount for each quarter will add to the principal amount for the next quarter.