The compound interest formula solves for the future value of the investment after set number of years. The formula itself is as follows: FV=P(1+ic)n∗c{\displaystyle FV=P(1+{\frac {i}{c}})^{n*c}} The variables within the equation are defined as follows:  "FV" is the future value. This is the result of the calculation. "P" is your principal. "i" represents the annual interest rate. "c" represents the compounding frequency (how many times the interest compounds each year). "n" represents the number of years being measured. If interest compounds more often than annually, it is difficult to calculate the formula manually. You can use a compound interest formula for any calculation. To use the formula, you need to gather the following information:  Identify the principal of the investment. This is the original amount of your investment. This could be how much you deposited into the account or the original cost of the bond. For example, imagine your principal in an investment account is $5,000. Locate the interest rate for the debt. The interest rate should be an annual amount, stated as a percentage of the principal. For example, a 3.45% interest rate on the $5,000 principal value. In the calculation, the interest rate will have to be input as decimal. Convert it by dividing the interest rate by 100. In this example, this would be 3.45%/100 = 0.0345.  You also need to know how often the debt compounds. Typically, interest compounds annually, monthly or daily. For example, imagine that it compounds monthly. This means your compounding frequency ("c") would be input as 12. Determine the length of time you want to measure. This could be a goal year for growth, like 5 or 10 years, or this maturity of a bond. The maturity date of a bond is the date that the principal amount of the debt is to be repaid. For the example, we use 2 years, so input 2. Input your variables in the right places. Check again to make sure that you are inputting them correctly. Specifically, make sure that your interest rate is in decimal form and that you have used the right number for "c" (compounding frequency).  The example investment would be input as follows: FV=$5000(1+0.034512)2∗12{\displaystyle FV=\$5000(1+{\frac {0.0345}{12}})^{2*12}}  Compute the exponent portion and the portion of the formula in parenthesis separately. This is a math concept called order of operations. You can learn more about the concept using this link: Apply the Order of Operations. Simplify the problem by solving for the parts of the equation in parenthesis first, beginning with the fraction.  Divide the fraction within parentheses first. The result should be: FV=$5000(1+0.00288)2∗12{\displaystyle FV=\$5000(1+0.00288)^{2*12}}  Add the numbers within parentheses. The result should be: FV=$5000(1.00288)2∗12{\displaystyle FV=\$5000(1.00288)^{2*12}}  Solve the multiplication within the exponent (the last part above the closing parenthesis). The result should look like this: FV=$5000(1.00288)24{\displaystyle FV=\$5000(1.00288)^{24}}  Raise the number within the parentheses to the power of the exponent. This can be done on a calculator by entering the value in parentheses (1.00288 in the example) first, pressing the xy{\displaystyle x^{y}} button, then entering the exponent (24 in this case) and pressing enter. The result in the example is FV=$5000(1.0715){\displaystyle FV=\$5000(1.0715)}  Finally, multiply the principal by the number in parentheses. The result in the example is $5,000*1.0715, or $5,357.50. This is the value of the account at the end of the two years. This will give you the amount of interest earned.  Subtract the principal of $5,000 from the future value of $5357.50 to get $5,375.50-$5,000, or $357.50 You will earn $357.50 in interest over the two years.
कंपाउंड इंटरेस्ट के फोर्मुले को समझिये: कंपाउंड इंटरेस्ट फोर्मुले के Variables को इकठ्ठा करें: फोर्मुले का इस्तेमाल करें: फोर्मुले में गणित के कैलकुलेशन (math computations) को पूरा करें: अपने उत्तर (परिणाम) में से मूल राशि (principal) को घटाएँ (subtract):