## Monthly compound interest rate formula

P = principal amount (the initial amount you borrow or deposit) . r = annual rate of interest (as a decimal). t = number of years the amount is deposited or borrowed for.. A = amount of money accumulated after n years, including interest.. n = number of times the interest is compounded per year

Compound interest calculation. The amount after n years An is equal to the initial amount A0 times one plus the annual interest rate r divided by the number of  17 Oct 2019 Between compounding interest on a daily or monthly basis, daily similar like CDs, you quickly learn that not every bank offers the same interest rate. In the example above, interest is calculated - and then added to the  Calculating monthly compound interest. 1. Divide your interest rate by 12 (interest rates are expressed annually, so to get a monthly figure, you have to divide it  In order to calculate the FW$1 factor for 4 years at an annual interest rate of 6%, with monthly compounding, use the formula below: FW$1 = (1 + i)n; FW$1 = (1 + where P is the starting principal, r is the annual interest rate, Y is the number of years If the interest was compounded monthly instead of annually, you'd get i = interest rate Simple compound interest with one-time investments This is the formula that will present the future value (FV) of an investment after n years if (n) to reach$1 million (FV) if p monthly investments at i interest compounded c