Interest impact on accumulation of 1 per period

• Is calculated by the following formula:

Amount = [(1+i)t-1]/i where i is the interest rate and t is expressed decimally (.05 for 5 percent). Also, t is the time and .5 refers to 1/2 of a year, 2 equals 2 years and 7.75 equals 7 3/4 years.

Embedded terms in definition
Interest rate
Interest
Time

Related Terms

 << Interest equivalent factor Interest impact on instalment to amortize or amortization >>

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