Compound Interest Formula
The compound interest formula calculates the total accumulated value of a principle amount after time has elapsed with compounding interest. Normally, compound interest is computed iteratively, while this formula calculates the continuous growth taking into accound the time elapsed and frequency of investment.
|Rate of interest|
|Frequency of investment|
The compound interest formula calculates the growth of an initial value whos interest compounds over time. For example, to calculate the total value of an initial amount of , with an interest rate of , a quarterly frequency of investment ( times a year) and a time elapsed of years the formula would be: