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Rate of Compound Interest Formula

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The Rate of Compound Interest is the percent of the interest paid over the principal amount for the due period per year compounded n-times a year. Check FAQs

r = n \cdot 100 \cdot ({(\frac{CI}{P} + 1)}^{\frac{1}{n \cdot t}} - 1)

r - Rate of Compound Interest?n - No. of Times Interest Compounded Per Year?CI - Compound Interest?P - Principal Amount of Compound Interest?t - Time Period of Compound Interest?

Rate of Compound Interest Example

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Here is how the Rate of Compound Interest equation looks like with Values.

Here is how the Rate of Compound Interest equation looks like with Units.

Here is how the Rate of Compound Interest equation looks like.

5.0071 = 4 \cdot 100 \cdot ({(\frac{161}{1000} + 1)}^{\frac{1}{4 \cdot 3}} - 1)

5.0071 = 4 \cdot 100 \cdot ({(\frac{161}{1000} + 1)}^{\frac{1}{4 \cdot 3Year}} - 1)

5.0071 = 4 \cdot 100 \cdot ({(\frac{161}{1000} + 1)}^{\frac{1}{4 \cdot 3}} - 1)

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Rate of Compound Interest Solution

Follow our step by step solution on how to calculate Rate of Compound Interest?

FIRST Step Consider the formula

r = n \cdot 100 \cdot ({(\frac{CI}{P} + 1)}^{\frac{1}{n \cdot t}} - 1)

Next Step Substitute values of Variables

∴

r = 4 \cdot 100 \cdot ({(\frac{161}{1000} + 1)}^{\frac{1}{4 \cdot 3Year}} - 1)

Next Step Prepare to Evaluate

∴

r = 4 \cdot 100 \cdot ({(\frac{161}{1000} + 1)}^{\frac{1}{4 \cdot 3}} - 1)

Next Step Evaluate

∴

r = 5.00713693012402

LAST Step Rounding Answer

∴

r = 5.0071

Rate of Compound Interest Formula Elements

Variables

Rate of Compound Interest

The Rate of Compound Interest is the percent of the interest paid over the principal amount for the due period per year compounded n-times a year.

Symbol: r

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate of Compound Interest

No. of Times Interest Compounded Per Year

The No. of Times Interest Compounded Per Year is the number of times the interest is combined with the initial amount invested, borrowed, or lent per year.

Symbol: n

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find No. of Times Interest Compounded Per Year

Compound Interest

Compound Interest is the extra amount gained/paid on the principal amount for the time period at a fixed rate compounded n-times a year.

Symbol: CI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Compound Interest

Principal Amount of Compound Interest

Principal Amount of Compound Interest is the amount invested, borrowed, or lent initially at a fixed rate for a given duration of time compounded n-times a year.

Symbol: P

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Principal Amount of Compound Interest

Time Period of Compound Interest

Time Period of Compound Interest is the number of years for which the principal amount is invested, borrowed, or lent at a fixed rate compounded n-times a year.

Symbol: t

Measurement: TimeUnit: Year

Note: Value should be greater than 0.

Formulas to find Time Period of Compound Interest

Other formulas in Rate of Compound Interest category

Go Compound Interest Formula

CI = P \cdot ({(1 + \frac{r}{n \cdot 100})}^{n \cdot t} - 1)

Go Final Amount of Compound Interest

A = P \cdot {(1 + \frac{r}{n \cdot 100})}^{n \cdot t}

Go Principal Amount of Compound Interest

P = \frac{CI}{{(1 + \frac{r}{n \cdot 100})}^{n \cdot t} - 1}

Go Time Period of Compound Interest

t = \frac{1}{n} \cdot \log ((1 + \frac{r}{n \cdot 100}), \frac{CI}{P} + 1)

How to Evaluate Rate of Compound Interest?

Rate of Compound Interest evaluator uses Rate of Compound Interest = No. of Times Interest Compounded Per Year*100*((Compound Interest/Principal Amount of Compound Interest+1)^(1/(No. of Times Interest Compounded Per Year*Time Period of Compound Interest))-1) to evaluate the Rate of Compound Interest, The Rate of Compound Interest formula is defined as the percent of the interest paid over the principal amount for the due period compounded n-times a year. Rate of Compound Interest is denoted by r symbol.

How to evaluate Rate of Compound Interest using this online evaluator? To use this online evaluator for Rate of Compound Interest, enter No. of Times Interest Compounded Per Year (n), Compound Interest (CI), Principal Amount of Compound Interest (P) & Time Period of Compound Interest (t) and hit the calculate button.

FAQs on Rate of Compound Interest

What is the formula to find Rate of Compound Interest?

The formula of Rate of Compound Interest is expressed as Rate of Compound Interest = No. of Times Interest Compounded Per Year*100*((Compound Interest/Principal Amount of Compound Interest+1)^(1/(No. of Times Interest Compounded Per Year*Time Period of Compound Interest))-1). Here is an example- 5.007137 = 4*100*((161/1000+1)^(1/(4*94670856))-1).

How to calculate Rate of Compound Interest?

With No. of Times Interest Compounded Per Year (n), Compound Interest (CI), Principal Amount of Compound Interest (P) & Time Period of Compound Interest (t) we can find Rate of Compound Interest using the formula - Rate of Compound Interest = No. of Times Interest Compounded Per Year*100*((Compound Interest/Principal Amount of Compound Interest+1)^(1/(No. of Times Interest Compounded Per Year*Time Period of Compound Interest))-1).

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Rate of Compound Interest Formula

Rate of Compound Interest Example

Rate of Compound Interest Solution

Rate of Compound Interest Formula Elements

Other formulas in Rate of Compound Interest category

How to Evaluate Rate of Compound Interest?

FAQs on Rate of Compound Interest

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