principal initial amount
time number of years
rate interest rate as decimal
n number of periods per
time to compound
a amount to add to principal at either beginning or end of each
principal is equal to
time is equal to
rate is equal to
n is equal to
12, or monthly
a is equal to
The result that derived here is
124.68033078653431, which is equivalent to initial
121 compounded monthly, not initial
1 with addition
10 made each
n month then compounded.
What are the applicable mathematical formulas to determine the current value of the accrued interest and principal where the addition
a is made a) at the beginning of each period, or b) at the end of each period?
When is the interest applied to the principal during the given period?