**Compound interest formula**(including principal): A = P(1+r/n)

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^{)}If an amount of $5,000 is deposited into a savings account at an annual

**interest**rate of 5%,

**compounded**monthly, the value of the investment after 10 years can be

**calculated**as follows P = 5000. r = 5/100 = 0.05 (decimal).

Likewise, what is the formula of interest?

**Simple**Interest Formulas and Calculations: Use this

**simple**interest calculator to find A, the Final Investment Value, using the

**simple**interest formula: A = P(1 + rt) where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods.

How do you calculate interest earned?

**To calculate the interest from a savings account, you'll need the following pieces of information:**

- The amount of your deposit or the amount you lend, using the variable “P” for principal.
- When interest is calculated and paid (yearly, monthly, or daily, for example), using “n” for the number of times per year.