Final Value Of Compound Interest

The tamat value of compound interest is a capital value after being levied for a certain period.

Formula of Final Value of Compound Interest

Cn = C(1 + i)n

Information :
Cn = Capital to the period n
C = Capital
i = percentage of interest per period

Example of the tamat value of compound interest

Capital of $5,000,000 is charged with 10%/year compound interest. Please Specify tamat capital and interest earned for 6 years!

Answer:
C = $5,000,000
i = 10%/year
n = 6years

Cn = C(1 + i)n
C6 = $5,000,000(1 + 10%)6
C6 = $5,000,000 x 1.771561
C6 = $8,857,805

Interest = $8,857,805 - $5,000,000
Interest = $3,857,805

So the tamat capital is $8,857,805 and the interest is $3,857,805 earned for 6 years.

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Referensi :
  • To'Ali's book math group accounting and sales

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