Compound Interest: The Most Important Equation In History

  • A is the amount after applying interest rate.
  • P is the amount of the initial investment.
  • r is the interest rate expressed in decimal.
  • n is the number of times interest rate is applied (number of cycles).
  • t is the amount of time the investment is invested for.

Easy To Understand And Implement

Broadly Applicable

Achieves Remarkable Results

Footnotes

  1. https://en.wikipedia.org/wiki/Compound_interest
  2. https://www.investopedia.com/terms/i/interestrate.asp
  3. https://doi.org/10.3109/03014460.2013.807878

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