# How do you calculate compound interest in a table?

**Compound interest**is calculated by multiplying the initial principal amount by one plus the annual

**interest rate**raised to the number of

**compound**periods minus one. The total initial amount of the loan is then subtracted from the resulting value.

Also asked, how do you calculate interest compounded monthly?

If **interest** is **compounded** yearly, then n = 1; if semi-annually, then n = 2; quarterly, then n = 4; **monthly**, then n = 12; weekly, then n = 52; daily, then n = 365; and so forth, regardless of the number of years involved. Also, "t" must be expressed in years, because **interest** rates are expressed that way.

**5**%,

**compounded monthly**, the value of the investment after 10 years can be calculated as follows P = 5000. r =

**5**/100 = 0.05 (decimal).

Also know, what is the math formula for compound interest?

**Compound interest** is calculated by multiplying the initial principal amount by one plus the annual **interest** rate raised to the number of **compound** periods minus one. **Interest** can be compounded on any given frequency schedule, from continuous to daily to annually.

To **calculate** annual **compound interest**, multiply the original amount of your investment or loan, or principal, by the annual **interest** rate. Add that amount to the principal, then multiply by the **interest** rate again to get the second year's **compounding interest**.