What is the formula to calculate compound interest?

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.

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.

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

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