🔗Compound Interest Formula 🔗 a=p(1+r12)12y a = account balance ($) y = time invested (years) p = initial deposit or “principal” r = interest rate compounded monthly (as a decimal)
🔗Equivalent APR Formula 🔗 APRAPR=(1+r12)12−1 🔗where r = interest rate compounded monthly (as a decimal)
🔗Future Value Annuity Formula 🔗 a=p∗(1+r12)12y−1r12 a = account balance ($) y = time invested (years) p = regular (monthly) deposits ($) r = interest rate compounded monthly (as a decimal)
🔗Loan Payment Formula 🔗 p=a∗r121−(1+r12)−12y a = loan amount ($) y = time invested (years) p = regular (monthly) payment ($) r = interest rate compounded monthly (as a decimal)