The caret symbol represents an exponential equation which means a number is raised to the power of another. Monthly compounding is calculated by principal amount multiplied by one plus rate of interest divided by a number of periods whole raise to the power of the number of periods and that whole is subtracted from the principal amount which gives the interest amount. Includes compound interest formulas to find principal interest rates or final investment value including continuous compounding A Pert.
P the principal investment amount the initial deposit or loan amount also known as present value or PV r the annual interest rate expressed in decimal form decimal 100.
Press CALCULATE and youll get two numbers. Choose the interval that your savings will compound at. Just enter a few pieces of information and this CD. Enter the annual rate of interest that your savings will compound at.