Compound Interest Calculation
The calculation of compound interest formula to find principal plus interest. It uses this same formula to solve for principle rate or time given the other know values.
Formula of compound interest calculation
A= p{1+r/100)nt
In the formula
A= Accrued amount( principle + interest)
P= Principle amount
r = Annual nominal interest rate
nt= number of year
Example
Mr. X borrow amount Rs 36000 @ annually compound interest 24% per year for 3 year
So we calculate
36000(1+24/100) power 3
36000(124/100)power 3
36000*1.24*1.24*1.24
68638
So A=68638
Compound interest = Accrued amount- Principe
68638-36000
= Rs.32638