Compound interest grows at a faster rate than basic interest ... When calculating interest-on-interest, the compound interest formula determines the amount of accumulated interest on the principal ...

This figure stays the same throughout the loan term. The simple interest formula The formula for simple interest is as follows: To use a simple interest calculator or calculate simple interest by ...

the calculations are a bit more complicated than the basic interest rate. The formula for calculating compound interest is A = P(1 + r/n)^nt. A is the amount of money you'll wind up with.