Compound interest means that when calculating interest, the total interest accumulated in the previous period is added to the principal to calculate the interest of a certain interest period, which is also commonly known as "interest means interest" and "rolling interest". The characteristic of compound interest calculation is that the sum of the principal and interest at the end of the previous period is taken as the principal of the next period, and the principal amount of each period is different when calculating.

There are two formulas for calculating compound interest:

1, one-time payment compound interest calculation formula. F=P( 1+i)^n。

2. Compound interest calculation formula for equal installment payment. F=A(( 1+i)^n- 1)÷i。

F is the sum of the final principal and interest, P is the initial principal, A is the equivalent, I is the interest rate, and n is the number of interest-bearing periods.

Tips: The above explanations are for reference only.

Response time: 2021-12-13. Please refer to the latest business changes announced by Ping An Bank in official website.