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Compound interest annuity final value formula
Compound interest final value formula. F = p( 1+i)n. (1+i)n is called the final value coefficient of compound interest, which is recorded as: (f/p, I, n); In practical application, it is usually solved by looking up a table. Example: A project in Zhang San plans to invest 654.38+10,000 yuan. The investment period of this project is five years, and the annual return on investment is 20%. Zhang San thinks: After the principal of 654.38 million yuan is invested in this project, what is the total principal and interest that can be recovered after five years? Analysis: Because the growth process of money with time and the calculation process of compound interest are similar in mathematics, various compound interest calculation methods can be used when calculating the time value of money. Zhang San is actually talking about the calculation of the final value of compound interest. The so-called "compound interest" is actually what we usually call "rolling interest". That is, after each interest period, interest should be added to the principal, and then calculated on schedule. .