Compound Interest Formula

The formula for compound interest is given by:

$$A = Pe^{rt}$$

where:

• A is the future value of the investment
• P is the principal investment amount
• e is the base of the natural logarithm
• r is the annual interest rate
• t is the number of years

This formula calculates the future value of an investment by taking the principal amount and multiplying it by the interest rate raised to the power of the number of years.