What Is the Compound Interest Formula. Interest on interestIt is the result of reinvesting interestSo that interest in the next period. Monthly Compound Interest Formula.
This formula makes use of the mathemetical constant e.
The formula for compound interest The formula used to calculate standard compound interest including the principal is as follows. A P1 r t. A P 1 r n nt A the amount of money accumulated after n years including interest P the principal amount your initial deposit or your initial. The formula for compound interest The formula used to calculate standard compound interest including the principal is as follows.