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What's an easy way to calculate compound interest without doing each equation one by one?

Guest Apr 25, 2017
 #1
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Create the equation,( a=p(1+r)^t ) and copy and paste it 

gobromash  Apr 25, 2017
 #2
avatar+94183 
+2

Yes, the equation is

 

\(FV=PV*(1+r)^n\)

 

where 

FV is the future value

PV is the present value

r is the interest rate per compounding  period as a decimal

n is the number of compounding intervals

 

Example

$3000 invested at 6% pa compouned monthly for 5 years.

 

pa stands for per annum which is per year.  But since it is compounded montly the rate is 0.06/12 = 0.005

n=5*12=60

PV=3000

 

FV=3000*(1+0.005)^60 = $4046.55

Melody  Apr 25, 2017

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