Financial Models
Compound Interest Formula
Financial Models
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Loans Strategies to minimise interest
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Compound interest can be calculated by using the following formula: \[Pv=Fv(1+\frac{i}{k})^{kn}\] Where :
Pv = Present value
Fv = Future value
i = Interest rate per annum (as a decimal)
k = The number of times the interest compounds each year
n = Time (years)
Pv = Present value
Fv = Future value
i = Interest rate per annum (as a decimal)
k = The number of times the interest compounds each year
n = Time (years)