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A 10 5 000 1 0 04 1 1 10 7 401 22.
Compound interest table math. Compound interest make a formula. A 0 5 000. Remember it because it is very useful. N is the number of years.
Calculate the future value after 10 years present value of 5 000 with annual interest of 4. R is the nominal annual interest rate. 276 compound interest tables table c 1 0 25 compound interest factors 0 25 single payment uniform payment series compound present sinking capital compound present amount worth fund recovery amount worth n factor factor factor factor factor factor n find f find p find a find a find f find p given p given f given f given p given a given a. So adding 10 interest is the same as multiplying by 1 10 now here is the magic.
In the formula a represents the final amount in the account after t years compounded n times at interest rate r with starting amount p. R 4 4 100 0 04. 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. Compound interest is calculated on the initial payment and also on the interest of previous periods.
We could do the. Suppose you give 100 to a bank which pays you 10 compound interest at the end of every year. This is the basic formula for compound interest. After one year you will have 100 10 110 and after two years you will have 110 10 121.
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