Formula: A = P(1 + r)^n = 1000 × (1 + 0.02)^8.

Mon, 04 May 2026 15:34:06 +0000

Exploring Formula A = P(1 + r)^n: The Power of Compound Growth with $1000 and 2% Annual Growth Over 8 Years When it comes to understanding financial growth, one of the most essential equations in finance and math is the compound interest formula: A = P(1 + r)^n. Whether you’re investing, saving, or planning for the future, this formula helps calculate how your money grows over time when compounded annually. ### What Does the Formula Mean? The formula A = P(1 + r)^n represents the future value A of an initial principal P growing at an annual interest rate r compounded n times over a period.