A is the final value of the money invested or borrowed, or the total Accumulated value, i.e. the interest accrued.
P is the principal or initial amount invested or borrowed, also known as the capital.
is the interest rate at which growth takes place over a year, represented as a decimal.
The number of compounds that the money has been invested
or borrowed – i.e. number of years × no of times interest is given per year.
This formula is for calculating the growth of an investment or loan. By replacing the plus sign with a minus sign, we change the formula to simple interest decay/depreciation:
See Straight-line decay Compound Interest formula:
A & P is the final value of the money invested or borrowed, or the total accumulated value, i.e. the interest accrued.
is the principal or initial amount invested or borrowed, also known as the capital.
is the interest rate at which growth takes place over a year, represented as a decimal.
is the number of compounds that the money has been
invested or borrowed.
This formula is for calculating the growth of an investment or loan. By replacing the plus sign with a minus sign, we change the formula to compound interest decay:
See Reducing-balance decay.
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