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mathematical formula for compound interest. Compound interest is the interest earned on the principal amount and on its accumulated interest. Compound interest is the addition of interest to the principal sum of a loan or deposit or in other words interest on interest.
Expanding Compound Interest Equation To Find R Excel Formula Intrest Rate Compound Interest from www.pinterest.com
Now we have to divide this value by 4 because compounded quarterly. I would choose option 1. FV PV 1r n.
R rate of interest.
Compound interest is the addition of interest to the principal sum of a loan or deposit or in other words interest on interest. Compound interest formula A simpler version of the compound interest formula is B P 1 r n where B is the final balance P is the principal r is the interest rate for 1 or each interest period and n is the number of payment periods. A the future value of the investmentloan including interest 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 t the time the money is invested or borrowed for. FV Future Value PV Present Value r Interest Rate as a decimal value and.
