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# How to calculate compound interest

Compound fascination , or fascination rates , is determined utilizing the compound interest system. By very easily utilizing our calculator, then you may fast function an proper routine delivery tactic to increase your upcoming riches. Compound interest may be the notion of incorporating gathered fascination to its primary amount, and so that attention is got in addition to attention with that second on. Formula You're used at the chemical attention calculator is A = P(1 ) +r/n)

• A = the future value of the investment
• P = the principal investment amount
• r = the interest rate (decimal)
• n = the number of times that interest is compounded per period
• t = the number of periods the money is invested for

• compounding. We'll assume you intend to leave the investment untouched for 20 years. Your investment projection looks like this...

YearInterest CalculationInterest EarnedEnd Balance
Year 1\$10,000 x 5%\$500\$10,500
Year 2\$10,500 x 5%\$525\$11,025
Year 3\$11,025 x 5%\$551.25\$11,576.25
Year 4\$11,576.25 x 5%\$578.81\$12,155.06
Year 5\$12,155.06 x 5%\$607.75\$12,762.82
Year 6\$12,762.82 x 5%\$638.14\$13,400.96
Year 7\$13,400.96 x 5%\$670.05\$14,071
Year 8\$14,071 x 5%\$703.55\$14,774.55
Year 9\$14,774.55 x 5%\$738.73\$15,513.28
Year 10\$15,513.28 x 5%\$775.66\$16,288.95
Year 11\$16,288.95 x 5%\$814.45\$17,103.39
Year 12\$17,103.39 x 5%\$855.17\$17,958.56
Year 13\$17,958.56 x 5%\$897.93\$18,856.49
Year 14\$18,856.49 x 5%\$942.82\$19,799.32
Year 15\$19,799.32 x 5%\$989.97\$20,789.28
Year 16\$20,789.28 x 5%\$1,039.46\$21,828.75
Year 17\$21,828.75 x 5%\$1,091.44\$22,920.18
Year 18\$22,920.18 x 5%\$1,146.01\$24,066.19
Year 19\$24,066.19 x 5%\$1,203.31\$25,269.50
Year 20\$25,269.50 x 5%\$1,263.48\$26,532.98

\$10,000 invested at a fixed 5% yearly interest rate, compounded yearly, will grow to \$26,532.98 after 20 years.