Compound interest

compound interest formula The interest on a loan or deposit calculated based on the initial principal, and the collective interest from previous periods is called compound interest

Compound interest is calculated on the principal amount and the interest already accumulated on previous periods For example, take the amount of formula 1688 Future value compound interest formula in Excel ; rate refers to Interest rate of each period; In the example: r12 or 8%12, as it's compounded monthly,