How to Calculate Compound Interest

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Lesson Objective
In this lesson, we will see some examples on how to calculate compound interest...
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About This Lesson
We will be using some examples to show how to use the compound interest formula. These examples will be on:
  1. Calculating the total amount A, when the P, r and n are given.
    (1st math video)
  2. Calculating the principal P, when the A, r and n are given.
    (2nd math video)
  3. Calculating the interest rate r, when A, P and n are given.
    (3rd math video)
The study tips and math videos below will explain more.
compound interest formula with labels

Study Tips

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Tip #1
The compound interest formula is given below:
compound interest formula
Where:   
  1. A is the total amount of money (including interest) after n years
  2. P is the principal (the amount money borrowed or invested)
  3. r is the interest rate (per year or per annum)
  4. n is the loan or investment duration in years
The math videos below will show how to calculate compound interest and more...

Math Video

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Video on calculating for A when P, r and n are given...
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Video on calculating for P when A, r and n are given...
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Video on calculating for r when A, P and n are given...
 
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Math Video Transcript

Practice Questions & More

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Multiple Choice Questions (MCQ)
Now, let's try some MCQ questions to understand this lesson better.

You can start by going through the series of questions on calculate compound interest or pick your choice of question below.
  1. Question 1 on using how to calculate compound interest
  2. Question 2 on finding the principal of a loan using the compound interest formula
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