Compound Interest Formulas

Posted In: Mathematics

Future value: A
Initial deposit: C
Annual rate of interest: r
Number of years invested: t
Number of times compounded per year: n

  1. General Compound Interest Formula
    $A=C(1+r/n)^{nt}$
  2. Simplified Compound Interest Formula
    If interest is compounded once per year, then the previous formula simplifies to:
    $A=C(1+r)^t$
  3. Continuous Compound Interest
    If interest is compounded continually (nā†’āˆž), then
    $A=Ce^{rt}$

Post Tags: Algebra


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