Beginning Value 1 interest rate NCPPY years NCPPY Future Value where. The compound interest formula is as follows. T The number of times the interest compounds yearly.
PA Principal amount.
A P1 rnnt If you want to try to see whats going on behind the scenes in our calculator heres how to do the math yourself using the compound interest formula. For CAGR you compute a rate which links the return over a number of periods. T Total accrued including interest. The formula for compound interest is P 1 rnnt where P is the initial principal balance r is the interest rate n is the number of times interest is compounded per time period and t is the number of time periods.