P: your principal deposit, or the original balance of your account.A: the amount of money you’ll have in your bank account after interest is paid.While it looks daunting, these equations use variables that can easily be decoded.
You may recognize these equations from high school algebra-remember when your teacher said you’d use it in real life some day? Well, today’s the day!
Calculating your monthly interest earned starts with knowing the basic equations for calculating simple versus compound interest: Simple interest 1 A = P x R x T Compound interest 2 A = P(1 + R/N) NT
