Compound Interest
Simple interest:
A = P(1 + rt)
where P = Principal amount of money to be invested, r = Interest , and t = Time
Compound Interest
The formula for calculating compound interest in a year is:
Compound Interest = Total amount of Principal and Interest in future (or Future Value) less Principal amount at present (or Present Value)
= P (1 + int %)^T
(Where P = Principal, int % = nominal annual interest rate in decimals, and n = number of compounding periods.)
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