How to calculate compound interest

 To calculate compound interest, you can use the following formula:

A = P(1 + r/n)^(nt)

Where: A = the future value of the investment/loan, including interest P = the principal amount (the initial amount of money) r = the annual interest rate (decimal) n = the number of times that interest is compounded per year t = the number of years the money is invested or borrowed for

Here's a step-by-step example:

1. Determine the principal amount (P).
2. Determine the annual interest rate (r) as a decimal. For example, if the interest rate is 5%, r = 0.05.
3. Determine how many times interest is compounded per year (n). For example, if it's compounded quarterly, n = 4; if it's compounded annually, n = 1.
4. Determine the number of years (t) the money is invested or borrowed for.
5. Plug these values into the formula to calculate the future value (A).

Keep in mind that if you're borrowing money, the future value will be the amount you owe, and if you're investing, it will be the amount you'll have accumulated.