P Initial value of investment 10000. You can also refer to our tutorial on how to calculate compound interest. Compound interest is when a bank pays interest on both the principal the original amount of moneyand the interest an account has already earned.
The compound interest formula contains the annual percentage yield formula of This is due to the annual percentage yield calculating the effective rate on an account based on the effect of compounding.
The compound interest formula contains the annual percentage yield formula of This is due to the annual percentage yield calculating the effective rate on an account based on the effect of compounding. P Principal Amount. There is a certain set of the procedure by which we can calculate the Monthly compounded Interest. Thus it takes two years for the compound interest to amount to Rs1152.