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How do you compute interest compounded? - Answers

It helps calculations if you think about compound interest as your money increasing every period (for instance, every year) by a certain factor. For example, if you get 5% interest per annum, your capital will increase by a factor of 1.05 every year. If you repeat this, say, 10 years, then your capital will obviously increase by a factor of 1.0510.The detailed formula for the capital you have after a number of periods is thus:(initial capital) x (1 + rate/100)periodsIf you want to know only how much interest you earned, rather than the total money you'll have, just subtract the initial capital.



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How do you compute interest compounded? - Answers

https://math.answers.com/math-and-arithmetic/How_do_you_compute_interest_compounded

It helps calculations if you think about compound interest as your money increasing every period (for instance, every year) by a certain factor. For example, if you get 5% interest per annum, your capital will increase by a factor of 1.05 every year. If you repeat this, say, 10 years, then your capital will obviously increase by a factor of 1.0510.The detailed formula for the capital you have after a number of periods is thus:(initial capital) x (1 + rate/100)periodsIf you want to know only how much interest you earned, rather than the total money you'll have, just subtract the initial capital.



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https://math.answers.com/math-and-arithmetic/How_do_you_compute_interest_compounded

How do you compute interest compounded? - Answers

It helps calculations if you think about compound interest as your money increasing every period (for instance, every year) by a certain factor. For example, if you get 5% interest per annum, your capital will increase by a factor of 1.05 every year. If you repeat this, say, 10 years, then your capital will obviously increase by a factor of 1.0510.The detailed formula for the capital you have after a number of periods is thus:(initial capital) x (1 + rate/100)periodsIf you want to know only how much interest you earned, rather than the total money you'll have, just subtract the initial capital.

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      It helps calculations if you think about compound interest as your money increasing every period (for instance, every year) by a certain factor. For example, if you get 5% interest per annum, your capital will increase by a factor of 1.05 every year. If you repeat this, say, 10 years, then your capital will obviously increase by a factor of 1.0510.The detailed formula for the capital you have after a number of periods is thus:(initial capital) x (1 + rate/100)periodsIf you want to know only how much interest you earned, rather than the total money you'll have, just subtract the initial capital.

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