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Result

The formula

A = final amount, P = principal, r = annual rate, n = compounds per year, t = years.

A = P(1 + r/n)^(nt)

Worked example

  1. P = $10,000, r = 5%, n = 12, t = 10
  2. A = 10000 × (1 + 0.05/12)^120
  3. A ≈ $16,470

Result: Final: $16,470

Interesting facts

Einstein's quote?

Compound interest is often called the eighth wonder of the world — whether Einstein said it is debated, but the math is real.

Frequently asked questions

Interest calculated on both the initial principal and accumulated interest from previous periods.

Not financial advice.

Last reviewed: 2026-07-01 — Reviewed by: Editorial Team

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