The site is here to help you understand compounded interest
You take the formula A=P(1+r/n)^nt and plug in the numbers accordingly.
Example:Annual compound interest formula. 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
You use the formula A=P(1+r/n)^nt and plug in the numbers.
A= The final amount
P= Original investment
r= interest rate
t= time in years of investment
n= number of times it is compunded
The process of earning interest on top of interest. The interest is earned constantly, and immediately begins earning interest on itself.
An amount of $2,340.00 is deposited in a bank paying an annual interest rate of 3.1%, compounded continuously. Find the balance after 3 years. Solution. Use the continuous compound interest formula, A = Pe rt, with P = 2340, r = 3.1/100 = 0.031, t = 3.