What would a compound interest formula look like coded in PHP? The Compound Inte

Question

What would a compound interest formula look like coded in PHP?

The Compound Interest Formula is: = (1 + )

Where P = principal amount (the initial amount you borrow or deposit) r = annual rate of interest (as a decimal) t = number of years the amount is deposited or borrowed for. A = amount of money accumulated after n years, including interest. n = number of times the interest is compounded per year

Example: An amount of $1,500.00 is deposited in a bank paying an annual interest rate of 4.3%, compounded quarterly. What is the balance after 6 years?

Explanation / Answer

FORMULA for compound Interest = A = P (1 + r/n) (nt)

<?php
   $cpy=2;       // No. of times compound interest per year
   $n=7;     // Year
   $p=50;        // Principal
   $ir=20;       // Interest Rate
   $dd = 1+(($ir/$cpy)/100);     //ci = p * (1 + ir/cpy)^(cpy*n)
   $ci = $p*pow($dd,$cpy*$n);
   echo "Compount interest : ".$ci;
?>

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