Mo logo [home] [lexicon] [problems] [tests] [courses] [auxiliaries] [notes] [staff] german flag
Mathematics-Online lexicon:

Compound Interest

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z overview
With an interest rate of $ p$ , a seed capital $ x$ results after $ n$ out-/incoming payments of $ r$ ($ r<0$ or . $ r>0$ respectively) in the final sum of

$\displaystyle y = (1+p)^nx + \frac{(1+p)^n - 1}{p} r\, . $

Here $ p=1$ corresponds to an interest rate of $ 100\%$ , speaking in annual rates.

With monthly interest calculation at an interest rate $ p_m$ , the annual percentage rate $ p_j$ calculates as

$\displaystyle p_j=(1+p_m)^{12}-1 \geq 12p_m\,. $

(Authors: Höllig/Hörner/Abele)

Examples:

[Annotations] [Links]
  automatically generated 4/ 8/2008