For many long-term financial transactions compound interest is used instead of simple interest. As you will see in the examples below the simple interest formula can be used to calculate the interest earned the total amount and other values depending on the problem. To calculate compound interest work out the interest for the first period add it on and then calculate the interest for the next period etc.
If you still dont understand this maths topic and need more help make sure to send me a message.
Amount Principal 1Rate100n where P is equal to Principal Rate is equal to Rate of Interest n is equal to the time Period Compound Interest Formula Derivation. Interest for the first period add it to the total and then calculate the interest for the next period and so on. So n 1. Make sure you besides studying how to calculate compound interest you also carefully examine how to find simple interest.