Calculate Accrued Amount Principal Interest A P 1 rt. How Compound Interest Benefits Savings and Investments. P 1 Rn nt - P Here P is principal amount.
A is the future value of investmentloan including interest earned P is the the principal investment or loan amount.
Calculate your balance if you invest 1000 for 1 year. Then to figure out the interest earnings you would subtract the original principal from the result. P 1 Rn nt - P Here P is principal amount. You have to divide the percent interest rate by 100 to get the actual interest rate.