Some examples require the use of logarithms to solve for an unknown time period. A P 1 r t where P is the initial amount principal r is the rate and t. Unlike the simple interest the compound interest pays interest on both the principal and the interest already earned.
Unlike the simple interest the compound interest pays interest on both the principal and the interest already earned.
Lets solve a few compound interest problems. Now lets work with the high-yield savings account. A P 1 r n n t A 1 000 000 1 06 12 12 5 A 1 000 000 1 0005 12 5 A 1 000 000 1005 60 A 1 348 85015. P 1 R100 n When money is compounded annually P 1 R 2100 2n When money.