Compound interest is when a bank pays interest on both the principal (the original amount of money)and the interest an account has already earned. To calculate compound interest use the formula below. In the formula, A represents the final amount in the a

Compound interest, or 'interest on interest', is calculated with the compound interest formula. The formula for compound interest is P (1 + r/n)^(nt), where P is the initial principal balance, r is the interest rate, n is the number of times inter

Gather variables the compound interest formula. If interest compounds more often than annually, it is difficult to calculate the formula manually. You can use a compound interest formula for any calculation. To use the formula, you need to gather the foll