Compound interest Interest basics

compound interest formula  interest, where you only pay interest on the original amount) This is how it is calculated: £ 400 is borrowed for three years at 5 % compound interest  How is compound interest calculated? Compound interest is calculated using the compound interest formula: A = P^nt For annual

The Four Formulas · FV = Future Value, · PV = Present Value, · r = Interest Rate , and · n = Number of Periods  Compound Interest Formula Derivation · The interest on Re 1- for 1 year = r100 = i · Interest after Year 1 = Pi · FV after Year 1 = P + Pi = P

For example, if you invest Rs 50,000 with an annual interest rate of 10% for 5 years, the returns for the first year will be 50,000 x 10100 or Rs 5,000 For Single Payment Compound Interest Formulas · F = $1,000 + $600 = $1,600 · F = $1,000 10 = $1,791 · F = $1,000 6 = $1,772 · F = $1,000