N the number compounding periods per year n 1 for annually n 12 for monthly etc t the time in years or fraction of years multiples of 1n. You need the beginning value interest rate and number of periods in years. Compound interest is the product of the initial principal amount by one plus the annual interest rate raised to the number of compounded periods minus one.
The compound interest formula is Compound Interest P 1 rn nt P If you need to calculate the amount payable then the formula is A P 1 rn nt.
Calculate Accrued Amount Principal Interest A P1 rn nt. In the example shown the formula in C10 is. Compound interest is based on the amount of the principal of a loan or deposit and interest rate which accrues in conjunction with how often the loan compounds. In the formula A represents the final amount in the account after t years compounded n times at interest rate r with starting amount p.