00083 x 100 083. Note that the carat indicates that youre raising a number to the power indicated after the carat. Because the interest rate on this loan is 6 and youre making payments on a monthly basis lets use this formula to calculate interest.
The formula used in the compound interest calculator is A P 1rnnt A the future value of the investment P the principal investment amount r the interest rate decimal.
To calculate the monthly interest on a loan or investment we determine the monthly interest rate by dividing the annual interest rate by 12. To calculate the monthly interest on 2000 multiply that number by the total amount. The formula for compound interest including principal sum is. 00083 x 2000 1660 per month.