To calculate the interest paid that would be generated on capital of 80000 pesos at a rate of 15 over a period of 2 months the formula would be applied as follows. Thats the big idea of compound interest. FV is the future value of the investment including interest.
A P 1 rt A the amount of money accumulated after n years including interest P the principal.
I p x 1 rt - p In that formula p is the principal amount r is the interest rate and t is the number of accrual or compounding periods in a year. Rate of interest R fracAPfrac1t 1 Interest Compounded Half-Yearly. Amount P mathbf1 fracr100n Compound Interest Total amount Principal. Interest rate formula for Compound Interest.