The Mathematics Behind It
Compound Mathematics Formula
A = P(1 + r/n)^(nt) + PMT × (((1 + r/n)^(nt) - 1) / (r/n))
- A = the future value of the investment
- P = the principal investment amount
- PMT = the payment addition made each period
- r = the annual interest rate (decimal)
- n = the number of times that interest is compounded per unit t
- t = the time the money is invested for in years
Frequently Asked Questions
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