Compound Interest

Formula: A = P (1 + r/n) ^ t (n) 


A--Amount
P--Principle
r--Rate
t--Time
n--what it is compounded by


Example:
If $2,500 is invested at 11.5 % interest, what is the value of the investment after 10 years for each compounding period?


A. Annually
A = 2,500 ( 1 + .115/1)¹ᵒ
A = $ 7424.87


B. Monthly
A = 2,500 ( 1 + .115/12)^10(12)
A = $ 7852.37


C. Daily
A = 2,500 ( 1 +.115/365)^10(365)
A = $ 7894.05