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Question by  Kelsea (28)

# What is the formula to calculate compound interest?

 +1 vote! +6 you voted Answer by  GeorgeH (179) The formula is simply (1 + x) ^ y, in which x is the interest rate per period and y is the number of periods. For example, an 8% interest rate compounded quarterly for ten years would have x=. 08/ 4 =. 02 and y= 10 * 4 = 40.

 +1 vote! +6 you voted Answer by  DrHarris (508) A = P(1+(r/n))^(nt), where A is the final amount, P is the current amount, r is the APR, n is compounds each year, and t is the number of years.

 +1 vote! +6 you voted Answer by  steve88 (14) You'll need to know three things: 1) how much money you have now (let's call it NOW, example \$1000) 2) the interest rate % (let's call it INTEREST, example 1% monthly) 3) how many times the interest is applied to your money (let's call it TIMES, example 4 months) Here's the formula: MONEYLATER = NOW(1+INT)^TIMES -> 1000*(1+0. 01)^4 = 1040. 60

 +1 vote! +5 you voted Answer by  ktt (355) The future value = present value * (1 + interest rate)^ number of periods For example, 100 dollars at 10 percent interested compounded 10 times= \$100 * 1. 1^10 = \$259. 37