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How to find the difference on compound interest

User AtinSkrita
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1 Answer

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Calculate Accrued Amount (Principal + Interest) A = P(1 + r)t

Calculate Principal Amount, solve for P. P = A / (1 + r)t

Calculate rate of interest in decimal, solve for r. r = (A/P)1/t - 1.

Calculate rate of interest in percent. ...

Calculate time, solve for t.

If an amount of $5,000 is deposited into a savings account at an annual interest rate of 5%, compounded monthly, the value of the investment after 10 years can be calculated as follows... P = 5000. r = 5/100 = 0.05 (decimal).

User Squeegee
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