Compound Interest Formula

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Lesson Objective
In this lesson, we will learn about the basics behind compound interest formula...
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About This Lesson
In this lesson, we will:
  1. Learn about compound interest.
  2. See how compound interest works.
    (1st math video)
  3. Find the formula for compound interest.
    (2nd math video)
The study tips and math videos below will explain more.
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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 explain more on this formula. You can see the examples on using this formula here.

Math Video

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Video on Figuring Compound Interest
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Video on Finding the Compound Interest Formula
 
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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 compound interest formula or pick your choice of question below.
  1. Question 1 on calculating the compound interest
  2. Question 2 on using the compound interest formula
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