What Is Compound Interest? How To Calculate Interest

compound interest formula  Apply the Annual Compound Interest Formula Simple interest only earns a fixed amount of interest based on the original principal amount On the other hand, Use compound interest formulas 2 Calculate present value 3 Understand and compute effective annual yield Page 4

Advantages of the compound interest formula For both individual and business investors, using the compound interest formula to work out the Compound interest is taken from the initial – or principal

Compound Interest Formula FV=PV^N Annuity Formula FV=PMT(^N What is Compound Interest? · I = Interest amount This is the extra amount that is added to the original · P = Principal amount This is the original amount