For example, if an investor invests the 5000 yuan (a) saved in the first year, he will get a return of 3%(i) every year, and then put the sum of these principal and interest together with the 5000 yuan he needs to pay every year into a new round of investment.
Then after 30 years (n), his total assets will become: F=5000×[( 1+3%)? - 1] / 3%=237877.08。 Among them, the investor * * * invested 5000X30= 150000 yuan, and * * * earned interest of 87877.08 yuan.
Extended data
F=P×( 1+i)？
F=A(( 1+i)？ - 1)/i
P=F/( 1+i)？
P=A(( 1+i)？ - 1)/(i( 1+i)？ )
A=Fi/(( 1+i)？ - 1)
A=P(i( 1+i)？ )/(( 1+i)？ - 1)
F: future value, or future value, that is, the sum of principal and interest at the end of the period; P: present value, or beginning number; A: Annuity, or equivalent; I: interest rate or discount rate; N: Number of interest-bearing periods.
Characteristics of compound interest calculation: the sum of principal and interest at the end of the previous period is taken as the principal of the next period, and the principal amount of each period is different when calculating.
Baidu encyclopedia-compound interest calculation formula
Baidu encyclopedia-compound interest