Compound Interest

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Compound interest, abbreviated as CI, is the interest earned on an investment or paid on a loan.

 

compound interest Formula

\(\large{ CI =  P \; \left[ \left( 1 + i \right)^n  -1 \right]  }\)  

 WHERE:

\(\large{ CI }\) = compound interest

\(\large{ P }\) = initial principle

\(\large{ i }\) = interest rate

\(\large{ n }\) = number of compounding periods (daily, monthly, quarterly, semi-annually, or annually)

 

Tags: Equations for Manufacturing