How to Work out Compound Interest on Savings
Determine your principal balance.. Identify your annual interest rate.. Figure out your compounding frequency.
Steps
1
Determine your principal balance.
Determine your principal balance.
2
Identify your annual interest rate.
Identify your annual interest rate.
3
Figure out your compounding frequency.
Figure out your compounding frequency.
4
Determine the time period.
Determine the time period.
5
Decide whether or not you will be making regular contributions.
Decide whether or not you will be making regular contributions.
6
Learn the compound interest formula.
Learn the compound interest formula.
7
Input your variables.
Input your variables.
8
Solve the equation.
Solve the equation.
9
Calculate interest earned.
Calculate interest earned.
10
Adjust your calculation as needed.
Adjust your calculation as needed.
11
Understand the regular contributions formula.
Understand the regular contributions formula.
12
Fill out your equation.
Fill out your equation.
13
Do the math.
Do the math.
14
Calculate the interest earned.
Calculate the interest earned.
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