This is the compound interest formula. Compound the money annually for 20 years. Calculates principal principal plus interest rate or time using the standard compound interest formula A P1 rnnt.
Say you are getting 10 interest annually we will express 10 as a decimal 01.
FV PV1 rm mt or FV PV1 i n where i rm is the interest per compounding period and n mt is the number of compounding periods. Ntln1 r n lnA P n t ln 1 r n ln A P Divide each term by nln1 r n n ln 1 r n and simplify. Say you are getting 10 interest annually we will express 10 as a decimal 01. FV PV1 rm mt or FV PV1 i n where i rm is the interest per compounding period and n mt is the number of compounding periods.