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3 years ago

5

What is the equation for compound interest

1 answer:

sergey [27]3 years ago

3 0

A = P(1 + r)^n

where A is the amount after n years, P = principal( initial amount), r = annual rate as a decimal fraction and n = number of years

If interest is accumulated say monthly then it would be

A = P(1 + r/12)^12n

For quarterly replace the 12 by 4

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