A = Total Accrued Amount (principal + interest) P = Principal Amount I = Interest Amount r = Rate of Interest per year in decimal; r = R/100 R = Rate of Interest per year as a percent; R = r * 100 t = Time Period involved in months or years From the base formula, A = P(1 + rt) derived from A = P + I and I = Prt so A = P + I = P + Prt = P(1 + rt)
<span>A = Total Accrued Amount (principal + interest)P = Principal AmountI = Interest Amountr = Rate of Interest per year in decimal; r = R/100R = Rate of Interest per year as a percent; R = r * 100t = Time Period involved in months or years</span>
From the base formula, A = P(1 + rt) derived from A = P + I and I = Prt so A = P + I = P + Prt = P(1 + rt)
Note that rate r and time t should be in the same time units such as months or years. An example would be...
