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I have here, scribbled on a piece of paper, a formula for compound interest... it looks like:
CI = P[(1+(r/n)n-1]
I'm not even sure if this is right. Could someone please give me the formula for compound interest, with the explanation of the terms.
Thanks.
yes, I am that dumb :)
There is a missing right parenthesis in your formula.
I don't know if this formula is right. What does Google say about it?
ERmm... I never thought of google. I must be losing it.
Anyways, I found it here http://www.stillwater.k12.ok.us/bowenTI83web/FG4.htm
The formula for simple interest is: F = P ( 1 + R / N ) ^ ( N * T )
Where : F = final amount
P = initial amount
R = interest rate
N = number of compounding periods
T = Time ( in years )
Nope, that's the formula for compound interest :p
(PRT)/100 is the formula for simple interest, when:
P = principle (initial investment)
R = rate p.a. (as a percentage)
T = term (in years)
This will give future value after T years...
s.
Formula for compound interest n times in t years:
A = P(1 + r/n)nt
Forumla for compound interest continuously in t years.
A = Pert
where e is the Euler Number 2.718281828
Quarterly?Quote:
Originally posted by prog_tom
Forumla for compound interest quarterly in t years.
A = Pert
where e is the Euler Number 2.718281828
P(e)rt is the continually compounded one. If I still had my calculus book I'd give the proof...
Yes, that's the word, Continuesly(Unstopped).