Is this the formula for calculating compound interest,? P(1+R÷100)^n-P
No, the correct formula for calculating compound interest is:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment/loan amount
r = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested/borrowed for
Okay, got it
Great! If you have any more questions, feel free to ask!
No, the formula you provided is not correct for calculating compound interest. The correct formula for calculating compound interest is:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment/loan amount
r = annual interest rate (in decimal form)
n = number of times that interest is compounded per year
t = number of years
This formula calculates the future value of an investment or loan, taking into account the compounding of interest over time.