What is the compound interest of 75000 at 79 per annum compounded semi-annually in 3 years. The Difference Between Simple Interest and Compound Interest. Calculating compound interest is complicated.
Compound Interest is calculated on the initial payment and also on the interest of previous periods.
You figure simple interest on the principal which is the amount of money borrowed or on deposit using a basic formula. A the future value of the investmentloan including interest. How to use the compound interest formula. 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.