Scroll down the page for examples and solutions on how to use the Simple Interest Formula. Solution B P 1 r n P 2150 r 6 annual interest rate 4 interest periods 15 quarterly interest rate n number of payment periods number of interest periods times number of years. Cq P 1r4n 1 Where C q is the quarterly compounded interest.
Cq P 1r4n 1 Where C q is the quarterly compounded interest.
Simplify the problem by solving for the parts of the equation in parenthesis first beginning with the fraction. How much money is in the bank after for 6 years. R is the interest rate per year or per annum n is the loan or investment duration in years. Compound interest calculator Compound Interest is calculated on the initial payment and also on the interest of previous periods.