Compound Interest Formula
Expression: A = P(1 + r/n)^(nt)
Compound interest reinvests earned interest, accelerating growth. A=maturity, P=principal, r=annual rate, n=compounding frequency per year, t=years.
Example: ₹50,000 at 8% compounded quarterly for 3 years
P=50,000, r=0.08, n=4, t=3
A = 50,000 × (1 + 0.02)^12
Result: A ≈ ₹63,508