The interest on savings accounts is calculated using compound interest. To calculate the interest gained on your account, follow these steps:
Get the original amount saved (P).
Get the saving period in years (t).
Get the interest rate (r).
Get the frequency with which interest is calculated in a year (n).
Apply the compound interest formula below to find the total amount of money that will be in your account at the end of the period:
Amount = P (1 + r/n)nt
Calculate the interest earned using the following formula:
Total interest = Amount − P
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