Whats the formula for compound interest?
I leant my maths book to my friend on the eve of my maths mock exam.seeeeensible :s
Answer
Formula for straightforward calculation:
p = the principal (the initial amount you borrow or deposit)
r = the annual rate of interest (percentage)
n = the number of years the amount is deposited or borrowed for.
a = the amount of money accumulated after n years, including interest.
when the interest is compounded once a year:
a = p(1 + r)n
see website for more explanations.
:-) :-)
