Compund Interest Formula


UNP Reporter
The formula for calculating compound interest depends on several factors like the principal amount, interest rate, compounding frequency, and the time duration. The generic formula for computing compound interest is:

A = P (1 + r/n)^(nt)


  • A represents the total amount (including principal and interest)
  • P is the principal amount
  • r is the annual interest rate (in decimal format)
  • n denotes the number of times the interest is compounded per year
  • t is the time duration (in years)

By using this formula, you can calculate the total amount you will receive at the end of the investment period.