Interests are calculated based on the rate of return on Investment (ROI). There are two methods that can be used on the Interest Calculator: 1. Simple Interest 2. Compound Interest The Simple Interest is calculated using the following formula to find A, the Final Investment Value: A = P(1 + rt) where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods. According to ecalculatorsite.com the annual compound interest, including principal sum, is: A = P (1 + r/n) (nt) Where: A = the future value of the investment/loan, including interest P = the principal investment amount (the initial deposit or loan amount) r = the annual interest rate (decimal) n = the number of times that interest is compounded per year t = the number of years the money is invested or borrowed Dnepr, Ukraine
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