Compound Interest Calculator
Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. It differs from simple interest, where interest is not added to the principal. The more frequently interest is added, the greater the total interest will be.
The formula for compound interest is: A = P (1 + r/n)^(nt), where:
- P is the principal amount (the initial amount of money)
- r is the annual interest rate (in decimal)
- n is the number of times that interest is compounded per time period
- t is the time the money is invested for, in years