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)