MathLiveCompound interest (future value)
Gives the amount an investment or loan grows to when interest is added periodically and the interest itself earns interest. It is used to compute future balances for savings, deposits and debts.
A = P\left(1+\frac{r}{n}\right)^{nt}What the symbols mean
| final amount including interest (currency) | |
| principal, the initial amount (currency) | |
| annual nominal interest rate as a decimal | |
| number of compounding periods per year | |
| time in years |
About this formula
- FieldEconomics and finance
- TopicInterest and annuities
- LevelHigh school
- Also calledcompound interest formula, future value compound interest, future value with compounding, compound amount formula, growth of investment with compounding
Write it in Obsidian
MathLive is a free visual math editor for Obsidian. Run Find a formula, type “compound interest (future value)”, and it goes into your note as editable LaTeX. You can also scan formulas from screenshots, PDFs and handwriting.