T Time Involved in years 05 years is calculated as 6 months etc. This video provides an example of compounded interest. Following is the formula for calculating compound interest when time period is specified in years and interest rate in per annum.
Treasury savings bonds pay out interest each year based on their interest rate and current value.
Using the Information. A P Where P Principal R Rate of interest pa per annum ie annually. In the formula A represents the final amount in the account that starts with an initial P using interest rate r for t years. The interest rate is 35 so expressed as a decimal r 0035.